The effect of XBRL adoption on the pay-performance sensitivity

Abstract

The purpose of this paper is to investigate the effect of the XBRL mandate on pay-performance sensitivity I posit that XBRL improves external monitoring and in turn strengthens the link between pay and performance Irrespective of market-based or accounting-based performance measures the empirical results reveal that pay-performance sensitivity increases after XBRL adoption Moreover I find that firm is likely to give more equity-based compensation after XBRL mandate I also provide evidence that XBRL reporting improves the monitoring environment to a greater extent for small firms In dynamic analysis the result provide evidence to support the causal inferences about the relationship between XBRL implement and compensation contract design

Date of Award	2019
Original language	English
Supervisor	Ting-Kai Chou (Supervisor)