이사의 보상성향이 이익품질에 미치는 영향

I investigate how director's compensation scheme affects earnings quality. Firms can give an incentive designed to provide financial benefits associated with performance-based compensation to directors, on the other hand, may offer stock options based on non-market performance scheme such as expanding market share. If the compensation scheme is paid to the directors in connection with the accounting profit, they have an incentive to maximize their profit compensation. In contrast, for the interests of non-market performance conditions, they may increase the earnings quality in order to reduce uncertainty and to increase firm's intrinsic value. This study confirms whether the form of compensation paid to directors affects the level of discretionary accruals and Conservatism. Our sample period of this study is from 2009 to 2013. In the study, the results show that firms with the form of equity compensation of directors have the level of discretionary accruals negative(-) significantly. and the firms is more conservative. This result suggests that equity compensation paid to directors have a positive impact on the earnings quality. Previous studies confirmed the negative effect of stock options paid to CEO, but this study equity compensation paid to directors may lead to different results. Also, this study offers important implications for the design of the compensation paid to directors, and implies that further study on equity compensation paid to directors in the form of directors is needed.