| Summary: | 碩士 === 國立彰化師範大學 === 財務金融技術學系 === 102 === The purpose of the study is to investigate the effects of pay-performance sensitivity on the company’s financial statement restatements. Since the quality of financial statement restatemets will be questioned. To avoid executive compensation relying too much on the earnings of report, the company will redesign the compensation structure and also reduce the associativity between compensation and performance.
This research takes Listed companies and OTC companies in Taiwan as examples which financial statement restates are in the period of 2006-2012. Furthermore, the firms which have similar size (that did not restate) in the same industry from the same period are chosen as the control firms.
The empirical results indicate that compared to matched control firms, restated firms have lower pay-performance sensitivity. Moreover, the situation is more obvious in which pay-performance sensitivity of decrease is belonging to government regulators have expressed great concern over financial statement restatements.
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