NDLI: Game analysis on the motivation of equity incentive contracts in the presence of earnings management

Content Provider	IEEE Xplore Digital Library
Author	Jing Zhou
Copyright Year	2013
Description	Author affiliation: Donghua Univ., Shanghai, China (Jing Zhou)
Abstract	This paper develops a game analysis model of choosing incentive contract in the presence of earnings management. The model shows that, lower efficiency of the capital market would lead weaker motivation for companies implementing equity incentive. In China, the primary motivation of equity incentive is to pursue Pareto Efficiency by inspiring managers to increase the long-term value of their company. In addition, Pareto improvement each player can share depends on the level of incentive. Given that the managers will use their power to increase the incentive level, a simple and feasible way for companies to implement equity incentive is to keep the same equivalent utility of incentive level with their original bonus scheme.
Starting Page	616
Ending Page	619
File Size	84481
Page Count	4
File Format	PDF
ISBN	9781479939855
e-ISBN	9781479902453
DOI	10.1109/ICIII.2013.6703011
Language	English
Publisher	Institute of Electrical and Electronics Engineers, Inc. (IEEE)
Publisher Date	2013-11-23
Publisher Place	China
Access Restriction	Subscribed
Rights Holder	Institute of Electrical and Electronics Engineers, Inc. (IEEE)
Subject Keyword	Economics equity incentive Analytical models earnings management Companies Games motivation incentive level Remuneration Contracts Monitoring
Content Type	Text
Resource Type	Article

Sl.	Authority	Responsibilities	Communication Details
1	Ministry of Education (GoI), Department of Higher Education	Sanctioning Authority	https://www.education.gov.in/ict-initiatives
2	Indian Institute of Technology Kharagpur	Host Institute of the Project: The host institute of the project is responsible for providing infrastructure support and hosting the project	https://www.iitkgp.ac.in
3	National Digital Library of India Office, Indian Institute of Technology Kharagpur	The administrative and infrastructural headquarters of the project	Dr. B. Sutradhar bsutra@ndl.gov.in
4	Project PI / Joint PI	Principal Investigator and Joint Principal Investigators of the project	Dr. B. Sutradhar bsutra@ndl.gov.in Prof. Saswat Chakrabarti will be added soon
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Game analysis on the motivation of equity incentive contracts in the presence of earnings management