The Economic Consequences of Perk Disclosure

49 Pages Posted: 19 Mar 2008 Last revised: 17 Jul 2017

See all articles by Yaniv Grinstein

Yaniv Grinstein

Cornell University - Samuel Curtis Johnson Graduate School of Management; Interdisciplinary Center (IDC) Herzliyah; European Corporate Governance Institute (ECGI)

David Weinbaum

Syracuse University

Nir Yehuda

University of Delaware - Accounting & MIS

Date Written: July 16, 2017


In December 2006 the SEC issued new rules requiring enhanced disclosure, by public US firms, of perquisites granted to their executives. The rules applied to perquisites granted in fiscal year 2006 and thereafter. Because the rules were implemented quickly, the perks disclosed for 2006 reflect the arrangements firms made under prior disclosure rules: firms could not revise perks to reflect the new rules until 2007. For firms that disclose for the first time in 2006, we predict and find that perks decrease in 2007, reflecting both the costs of increased disclosure and enhanced monitoring. This decrease in perks is offset by higher levels of non-perk compensation, however. We also predict and find that the effect of perk disclosure by formerly non-disclosing firms in 2006 leads to higher perks in 2007 for firms that were disclosing perks prior to the rule change.

Keywords: Perks, disclosure, executive compensation, governance

JEL Classification: G30 G34, G38

Suggested Citation

Grinstein, Yaniv and Grinstein, Yaniv and Weinbaum, David and Yehuda, Nir, The Economic Consequences of Perk Disclosure (July 16, 2017). Contemporary Accounting Research, Forthcoming, AFA 2011 Denver Meetings Paper, Available at SSRN: or

Yaniv Grinstein (Contact Author)

Cornell University - Samuel Curtis Johnson Graduate School of Management ( email )

Sage Hall
Ithaca, NY 14853
United States
607-255-8686 (Phone)
607-254-4590 (Fax)

Interdisciplinary Center (IDC) Herzliyah ( email )

P.O. Box 167
Herzliya, 46150

European Corporate Governance Institute (ECGI)

B-1050 Brussels

David Weinbaum

Syracuse University ( email )

Syracuse, NY
United States

Nir Yehuda

University of Delaware - Accounting & MIS ( email )

Alfred Lerner College of Business and Economics
Newark, DE 19716
United States

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