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NTU Management Review
Vol. 32 No. 3 Dec. 2022, 1-34
DOI:10.6226/NTUMR.202212_32(3).0001

The Effect of Information Opacity on the Weighting of
Performance Measures in the Compensation Contracts of CEOs:
Evidence from U.S. Firms

༟ৃீ׼ܓ࿁׵ੂБڗʘᑚཇΥߒʕᐶܸࣖᅺᛆࠠʘᅂ
ᚤj˸ߕ਷ɪ̹eɪᓞʮ̡މᅵ͉

Tay-Chang Wang, Department of Accounting, and Center for Research in Econometric Theory and
Applications, National Taiwan University
王泰昌 / 國立臺灣大學會計學系及計量理論與應用研究中心
Chia-Wen Liu, Department of Accounting, and Center for Research in Econometric Theory and
Applications, National Taiwan University
劉嘉雯 / 國立臺灣大學會計學系及計量理論與應用研究中心
Liang-Shiuan Chen, Department of Accounting, National Taiwan University
陳良軒 / 國立臺灣大學會計學系
Received 2020/7, Final revision received 2022/3

Abstract
This study examines the effect of information opacity of accounting numbers and stock-
related information on the weighting of accounting-based and stock-based performance
measures in CEOs’ compensation contracts. For stock-related information opacity, we find
that the weighting of the accounting-based performance measure significantly increases
and that the weighting of the stock-based performance measure significantly decreases
if the bid-ask spread of the stock increases. In addition, we find that the weighting of the
accounting-based performance measure significantly decreases and that the weighting of
the stock-based performance measure significantly increases if the number of analysts of a
corporation increases.
For information opacity of accounting numbers, we find that the weighting of the
accounting-based performance measure significantly decreases if the quality of the
information of financial statements worsens. However, the weighting of the stock-based
performance measure does not increase significantly simultaneously. Lastly, we take
industrial difference into account and find that different business models across industries
do not result in significantly higher or lower weightings of performance measures.
【Keywords】compensation contracts, information opacity, accounting-based performance
measures, stock-based performance measures

領域主編：戚務君教授

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