Arcticle’s by Yifei Xia

In a recent study published in European Accounting Review (EAR), Jun Han and I investigate how the data presentation format of executive compensation disclosures affects investors’ compensation- and investment-related judgments and decisions. Specifically, we examine whether, how, and why investors’ approval ratings of cash bonus schemes differ across data presentation formats. In 2017, the European Parliament updated the Shareholder Rights Directive (2007/36/EC) by incorporating a say-on-pay regime for investors at the EU level (Obermann & Velte, 2018). According to the amendment, companies must hold an advisory vote on executive compensation and issue an implementation report explaining the annual change in…