Disclosure Costs of Relative Performance Evaluation: Insights from CEO Compensation Contracts by Melissa Martin and Oscar Timmermans
Disclosure Costs of Relative Performance Evaluation: Insights from CEO Compensation Contracts by Melissa Martin and Oscar Timmermans
Melissa Martin, Interim Department Head of Accounting recently had the publication “Disclosure Costs of Relative Performance Evaluation” accepted in the Management Science journal. The paper, co-authored by Oscar Timmermans from the London School of Economics, examines how firms’ use of relative performance evaluation in CEO compensation contracts alters managers’ disclosure behavior. It highlights that these relative performance contracts are associated with significant decreases in the management-provided earnings forecasts and significant increases in the managers’ use of redactions in otherwise mandated disclosures.
Modified on June 09, 2025