Universität zu Köln

Aust, Viktoria, Pelger, Christoph ORCID: 0000-0002-7140-5262 and Drefahl, Christian (2021). Exploring the relationship between valuation and stewardship uses of accounting information: Empirical evidence from German listed firms. J. Int. Account. Audit. Tax., 42. AMSTERDAM: ELSEVIER. ISSN 1879-1603

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Abstract

While there is scarce empirical research on the relationship between valuation and stewardship uses of accounting information, existing studies on the basis of US data show a positive relationship. Motivated by recent analytical literature which suggests a context-specific relationship, our study analyzes the relationship between valuation and stewardship uses in a non-US-setting, using data from German listed firms from 2006 to 2015. In line with prior US studies, we find a positive relationship for Chief Executive Officer (CEO) compensation in univariate analyses. However, the relationship does not remain positive when considering firms' extent of free float in multivariate analyses, which suggests that firms' governance structures affect the relationship. For non-CEO management board members' compensation, we find no significant valuation/stewardship relationship in univariate and multivariate analyses. This finding might reflect differences in managerial characteristics, such as risk aversion, between CEOs and non-CEO board members. Highlighting the role of firm and managerial characteristics, our study offers more nuanced empirical insights into the relationship of valuation and stewardship uses. Our findings also raise doubts on whether the normative statement that valuation encompasses stewardship usefulness made by the International Accounting Standards Board (IASB) in its recent conceptual frameworks has empirical substance. (C) 2020 Elsevier Inc. All rights reserved.

Item Type:	Journal Article
Creators:	Creators Email ORCID ORCID Put Code Aust, Viktoria UNSPECIFIED UNSPECIFIED UNSPECIFIED Pelger, Christoph UNSPECIFIED orcid.org/0000-0002-7140-5262 UNSPECIFIED Drefahl, Christian UNSPECIFIED UNSPECIFIED UNSPECIFIED
URN:	urn:nbn:de:hbz:38-571193
DOI:	10.1016/j.intaccaudtax.2020.100375
Journal or Publication Title:	J. Int. Account. Audit. Tax.
Volume:	42
Date:	2021
Publisher:	ELSEVIER
Place of Publication:	AMSTERDAM
ISSN:	1879-1603
Language:	English
Faculty:	Unspecified
Divisions:	Unspecified
Subjects:	no entry
Uncontrolled Keywords:	Keywords Language IASB/FASB CONCEPTUAL-FRAMEWORK; PERFORMANCE-MEASURES; CEO; COMPENSATION; OBJECTIVES; IASBS; SIZE; IFRS; LAW Multiple languages Business, Finance Multiple languages
URI:	http://kups.ub.uni-koeln.de/id/eprint/57119