Discussion of 'Are CEOs Compensated for Value Destroying Growth in Earnings?'

8 Pages Posted: 5 Jan 2010 Last revised: 13 Sep 2010

See all articles by Ingolf Dittmann

Ingolf Dittmann

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE); Tinbergen Institute; Erasmus Research Institute of Management (ERIM); European Corporate Governance Institute (ECGI)

Date Written: March 4, 2010

Abstract

This discussion provides several explanations for the evidence presented in Balachandran and Mohanram (2010) that are consistent with efficient contracting. I also show that - contrary to the suggestion of the title - CEOs do not benefit from value destroying growth in earnings. Finally, I argue that there is no conclusive evidence that corporate investments destroy value.

Suggested Citation

Dittmann, Ingolf, Discussion of 'Are CEOs Compensated for Value Destroying Growth in Earnings?' (March 4, 2010). Review of Accounting Studies, Vol. 15, pp. 578-583, 2010, Available at SSRN: https://ssrn.com/abstract=1531770

Ingolf Dittmann (Contact Author)

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE) ( email )

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Tinbergen Institute

P.O. Box 1738
3000 DR Rotterdam
Netherlands

Erasmus Research Institute of Management (ERIM)

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3000 DR Rotterdam
Netherlands

European Corporate Governance Institute (ECGI) ( email )

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