Discussion of Troubled Asset Relief Program and earnings informativeness

Nan Zhou

Asian Review of Accounting, 2020, vol. 28, issue 2, 147-152

Abstract: Purpose - Vegaet al.(2020) find that incentives in executive compensation result in higher earnings informativeness. The discussion focuses on two areas for improvement. First, the authors could look into additional measures of earnings quality. This further analysis could help us understand whether the enhanced earning informativeness stems from capital market effects or real effects. Second, the authors could consider replacing their main earnings response coefficient (ERC) model with one of the alternative ERC models in the literature. Three different ERC models are discussed. Design/methodology/approach - This paper discusses capital market effects versus real effects and illustrates different ERC models. Findings - The discussed paper could differentiate between capital market effects and real effects and use an alternative ERC model. Originality/value - An accounting audience could be interested in the discussion on capital market effects versus real effects and the illustration on various ERC models.

Keywords: Capital market effect; Compensation contract; Earnings response coefficient (ERC); Real effect; Troubled Asset Relief Program (TARP) (search for similar items in EconPapers)
Date: 2020
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (application/pdf)
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eme:arapps:ara-10-2019-0187

DOI: 10.1108/ARA-10-2019-0187

Access Statistics for this article

Asian Review of Accounting is currently edited by Prof. Haiyan Zhou

More articles in Asian Review of Accounting from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().