Date of Award
8-2020
Degree Type
Report
Degree Name
Master of Science (MS)
Department
Economics and Finance
Committee Chair(s)
Jared Delisle
Committee
Jared Delisle
Abstract
Financial disclosures do not only influence the future reaction of customers, they also imply the financial strategies of the managers of corporations. Through analysis, we find a strong causal relationship between tone and readability of financial disclosures and incentive methods of managers. Controlling executives’ pay-performance sensitivity (delta) and other variables, executives with higher sensitivity of executives’ wealth to stock volatility (vega) (Coles, Daniel, Naveen, 2004) tend to announce reports with more negative tone and low readability.
Recommended Citation
Mi, Xiaoyan, "Executive Compensation Incentives Impact on the Tone and Readability of Financial Reports" (2020). All Graduate Plan B and other Reports, Spring 1920 to Spring 2023. 1455.
https://digitalcommons.usu.edu/gradreports/1455
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