| Summary: | 碩士 === 銘傳大學 === 會計學系碩士班 === 93 === Earning persistence is the key for a company with a concept of perpetual operation. This study uses the multiple regressions to investigate it. The results are as follows：when companies stay in the low earning persistence, the cash compensation will have a positive relationship with the cash flow from the operation；when companies stay in the high earning persistence, the stock compensation will have a positive relationship with the stock price. It means that when the companies stay in the different earning persistence. Since the compensation structure is different; therefore, the standard that companies evaluate the performance of the CEO is different.
In addition, when the companies prefer higher proportion of short-term incentive compensation in total compensation, the CEO’s cash compensation will have positive relationships with the change of the accounts receivable and accounts payable；When the companies prefer higher proportion of long-term incentive compensation in total compensation, the CEO’s stock compensation will have positive relationships with the depreciation and amortization expense. It means if the companies prefer the short-term incentive compensation, the CEO wills have the incentive to manipulate the accruals to reach the target compensation. On the other hand, if the companies prefer the long-term incentive compensation, the CEO will think highly of long-term profitability and performance, and reduce the incentive for the CEOs to manipulate short-term earning.
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