Is It Obviousness or Eloquence?Compensation Unfairness and Compensation Defense Effect of Non-financial Information
Does non-financial information with increasing value relevance have a compensation defense effect?Empirical evidence is found only in textual readability in existing literature.Based on the text of"management discussion and analysis"(MD&A),this paper discusses the compensation defense effect of non-financial information from the perspective of text similarity.Our research findings:(1)When there is excess compensation,the company will improve the MD&A text similarity compared with the industry,that is,the company adopts the defense strategy of"evasive"to the prevailing excess compensation.The company's defense strategy of"evasive"to excess compensation is more likely to occur in the case of lack of means of performance defense,and it will reduce the information disclosure of risks,human resources and compensation.(2)When the excess compensation is extreme,the company will reduce the MD&A text similarity and defend it with"persuasive language".The defense strategy of"persuasive"to extreme excess compensation is more likely to occur in the case of relatively effective means of performance defense.And it will increase the information disclosure of risks,human resources and compensation.These conclusions are helpful to enrich the compensation defense hypothesis from the perspective of non-financial information text manipulation,and the economic consequences of non-financial information text manipulation from the perspective of compensation disclosure.
万方数据
维普
