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NTU Management Review Vol. 32 No. 3 Dec. 2022

media, can also serve as the proxy for stock-related information opacity. Unfortunately,
in current research we are unable to test our hypotheses with this measure as the data this
research based from do not include such information. Second, we merge our data from
several databases, giving rise to variations in the number of observations in the different

regression models.

5. Originality and Contribution

The structure of CEOs’ compensation contracts has long been a popular issue among
researchers. Many studies have investigated how the weighting of performance measures
in the contracts is affected under certain circumstances; yet, no studies have explored the
fundamental theory proposed by Banker and Datar (1989), or provided complete discus-

sions on the relationship between information opacity and the weighting of performance
measures in the contracts. Our empirical study contributes to the literature by further prov-
ing this theory and filling the research gap.

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