I am an associate professor of accounting at Sacred Heart University in Fairfield, Connecticut, USA. I received my Ph.D. degree in accounting from Boston University, an MBA in international finance from Brandeis University and BBA in finance and banking from University of Dhaka, Bangladesh. I teach undergraduate and graduate students in core and advanced level accounting courses. My research interests lie in the realms of financial accounting. In particular, I am interested in corporate governance, corporate social responsibility, earnings management, executive compensation, financial analysts and financial and non-financial disclosures related research. Address: United States
This study examines the association between product recall and CEO compensation. Using a sample o... more This study examines the association between product recall and CEO compensation. Using a sample of U.S. automobile industry product recalls from 1999 to 2018, we find that product recalls have significant negative impacts on CEO compensation. Our findings hold after controlling for the common determinants of CEO compensation, such as firms’ stock market and operating performance and CEO-specific characteristics. An additional analysis shows that CEOs’ total and long-term compensation decreases with the number of recalls. However, we find no association between CEOs’ cash compensation and product recalls.
Dhaka Stock Exchange Ltd. is one of the barometers of Bangladesh Economy. The DSE has become the ... more Dhaka Stock Exchange Ltd. is one of the barometers of Bangladesh Economy. The DSE has become the common buzz in the mind of the people of the Bangladesh for the functionality and different positive and negative event. Recently it is going through a reengineering process to become a systematic and efficient organization to serve and develop the capital market of Bangladesh. However, top management’s effort to make the DSE an effective organization is not going on in equal footing or in a balanced way. While, it has an efficient automated trading system, its other functions are done manually despite having one of the country's largest LANs & WANs. In order to understand the problem the study attempts to undertake analysis of system in the DSE. Subsequently it attempts to develop a DFD to facilitate building a workable solution. Additionally, the study aims to suggest types of training and development measures to enable the employees acquire necessary skills to run the managerial-technological system.
PurposeThe purpose of this study is to examine the direct association between firms’ corporate so... more PurposeThe purpose of this study is to examine the direct association between firms’ corporate social responsibility (CSR) scores, CSR disclosures and executive compensation. This study further investigates the moderating role of CSR in the association between executive compensation and firms’ stock market and accounting performances.Design/methodology/approachThis study collects CEO compensation information from the Execucomp database and CSR performance information from the MSCI ESG database. The final sample consists of 4,193 firm-year observations for 1,318 US public firms for the period 2009–2013. This study uses lagged regression analysis to test the direct and moderating roles of CSR in executive compensation.FindingsRegarding the direct role of CSR, this study finds that CEO compensation is positively related to CSR performance but not to firms’ issuance of CSR reports. This study also finds a positive moderating role of CSR in the relationship between CEO compensation and firms’ stock performance. However, the authors do not identify any role for CSR in the relationship between CEO compensation and accounting performance. The results also show a negative association of CSR in the relationship between CEO compensation and firm size.Originality/valueThis study fills a gap in the literature by providing empirical evidence on the direct association between CSR and CEO compensation and how the association between CEO compensation and firm performance is moderated by CSR scores. The novel findings of this study will benefit managers, boards of directors, shareholders and other stakeholders, including regulators and policymakers.
ABSTRACT This study investigates whether corporate governance can mitigate real earnings manageme... more ABSTRACT This study investigates whether corporate governance can mitigate real earnings management. In recent years, firms have been switching from accrual based to real earnings management and the incidence of real earnings management is also increasing. The role of corporate governance to reduce accrual based earnings management is well documented in the literature, however there is no firm evidence regarding the role of corporate governance to constrain real earnings management. To fill the gap in the literature, I examine whether corporate governance can play any role to reduce real earnings management. I find evidence that firms may engage in real earnings management either to avoid reporting losses or to meet analysts’ forecasts. Cross-sectional analysis reveals that these activities are less prevalent for the firms that have larger institutional investors. However, I fail to find any evidence regarding the role of board to prevent real earnings management.
Inadequate risk monitoring and executive incentive system of US financial institutions have been ... more Inadequate risk monitoring and executive incentive system of US financial institutions have been considered as significant factors in exacerbating the financial crisis of 2008. Regulators put efforts to reform the executive compensation system in the post-crisis period. In this study, we conduct a comparative analysis on the economic determinants of the compensation for chief executive officers (CEOs) between the pre and post financial crisis periods. We use the data from US financial service institutions, since this is the sector that has been mostly affected by the financial crisis. We find that the mean values of total compensation and its incentive components including cash bonus and long-term compensations reduced significantly in post-crisis period. The proportion of fixed salary to total compensation has increased whereas the bonus has decreased significantly from pre- to post-crisis periods. In pre-crisis period, total compensation is determined by stock performance, accounting profit, long-term growth and leverage of the firms, whereas in post-crisis period stock return and leverage are the major economic factors that influence total compensation. We also find that leverage is positively associated with total compensation and leverage of the firm negatively influence the sensitivity of the pay for performance in both pre- and post-crisis periods. But the influence of leverage on pay for performance is weaker in post-crisis period compared to pre-crisis period. The Dodd-Frank Act, enacted in 2011, empowered the shareholders’ say on CEO pay. This influences the CEOs to focus on short-term stock returns in order to satisfy the scrutiny of the empowered shareholders. Disregarding other economic factors and narrowing down the focus on stock return in determining the executive compensation in post-crisis period could bring unintended consequences, and hinder the firms to take wider forward-looking approaches for the long-term sustainability.
Dhaka Stock Exchange Ltd. is one of the barometers of Bangladesh Economy. The DSE has become the ... more Dhaka Stock Exchange Ltd. is one of the barometers of Bangladesh Economy. The DSE has become the common buzz in the mind of the people of the Bangladesh for the functionality and different positive and negative event. Recently it is going through a reengineering process to become a systematic and efficient organization to serve and develop the capital market of Bangladesh. However, top management’s effort to make the DSE an effective organization is not going on in equal footing or in a balanced way. While, it has an efficient automated trading system, its other functions are done manually despite having one of the country's largest LANs & WANs. In order to understand the problem the study attempts to undertake analysis of system in the DSE. Subsequently it attempts to develop a DFD to facilitate building a workable solution. Additionally, the study aims to suggest types of training and development measures to enable the employees acquire necessary skills to run the managerial-technological system.
This paper examines whether the corporate social responsibility (CSR) performance of target firms... more This paper examines whether the corporate social responsibility (CSR) performance of target firms influences the acquisition premiums paid by the acquirers. Using U.S. public merger and acquisition (M&A) deals, I find that acquisition premiums increase in the targets’ perceived CSR quality, an effect incremental to previously-documented drivers of such premiums. These findings are also robust to (1) using different proxies for CSR measures and acquisition premiums, and (2) considering various dimensions of CSR (environment, community, employee, product, and diversity). Additional analysis reveals that the positive association between target firms’ CSR quality and acquisition premiums is stronger for high-CSR acquirers and larger targets. Overall, I combine the CSR and M&A literature by demonstrating that superior quality CSR performance affects acquisition premiums positively and thus expand our understanding of the value-driven role of CSR initiatives in a unique way.
SYNOPSIS This study investigates whether executives of socially responsible firms carry forward c... more SYNOPSIS This study investigates whether executives of socially responsible firms carry forward corporate social policies when they move to different firms. In order to identify the carryforward effects of top executives on corporate social responsibility (CSR) policies, we construct a data set by tracking the movements of executives across firms. We designate top executives as CSR Champions if their firms demonstrate superior-quality CSR practices. We find that the entrance of a CSR Champion into a new firm improves its CSR performance, and we label these incremental effects CSR-Carryforward Effects. Our findings are stronger in firms with poor past CSR performance. Overall, this study extends the executive and CSR-related literature by documenting that executives of socially responsible firms have positive CSR-related effects on their new firms. JEL Classifications: M12; M14.
This study investigates whether corporate governance can mitigate real earnings management. Speci... more This study investigates whether corporate governance can mitigate real earnings management. Specifically, this study investigates the role of the board and institutional owners to mitigate real earnings management. In recent years, firms have been switching from accrual-based earnings management to real earnings management, and the incidence of real earnings management has increased. The role of corporate governance to reduce accrual-based earnings management is well documented in the literature; however, there is no firm evidence regarding the role of corporate governance to constrain real earnings management. In order to fill the gap in the literature, this paper examines whether corporate governance, specifically the board of directors and institutional investors, play any role to reduce real earnings management. In this study, I find the evidence that firms engage in real earnings management either to avoid reporting losses or to meet analysts’ forecasts. The cross-sectional analysis reveals that these activities are less prevalent for the firms that have larger institutional investors; however, no evidence regarding the role of the board to prevent real earnings management is indicated. Keywords : corporate governance, real earnings management, board, institutional investors .
This study examines the association between product recall and CEO compensation. Using a sample o... more This study examines the association between product recall and CEO compensation. Using a sample of U.S. automobile industry product recalls from 1999 to 2018, we find that product recalls have significant negative impacts on CEO compensation. Our findings hold after controlling for the common determinants of CEO compensation, such as firms’ stock market and operating performance and CEO-specific characteristics. An additional analysis shows that CEOs’ total and long-term compensation decreases with the number of recalls. However, we find no association between CEOs’ cash compensation and product recalls.
Dhaka Stock Exchange Ltd. is one of the barometers of Bangladesh Economy. The DSE has become the ... more Dhaka Stock Exchange Ltd. is one of the barometers of Bangladesh Economy. The DSE has become the common buzz in the mind of the people of the Bangladesh for the functionality and different positive and negative event. Recently it is going through a reengineering process to become a systematic and efficient organization to serve and develop the capital market of Bangladesh. However, top management’s effort to make the DSE an effective organization is not going on in equal footing or in a balanced way. While, it has an efficient automated trading system, its other functions are done manually despite having one of the country's largest LANs & WANs. In order to understand the problem the study attempts to undertake analysis of system in the DSE. Subsequently it attempts to develop a DFD to facilitate building a workable solution. Additionally, the study aims to suggest types of training and development measures to enable the employees acquire necessary skills to run the managerial-technological system.
PurposeThe purpose of this study is to examine the direct association between firms’ corporate so... more PurposeThe purpose of this study is to examine the direct association between firms’ corporate social responsibility (CSR) scores, CSR disclosures and executive compensation. This study further investigates the moderating role of CSR in the association between executive compensation and firms’ stock market and accounting performances.Design/methodology/approachThis study collects CEO compensation information from the Execucomp database and CSR performance information from the MSCI ESG database. The final sample consists of 4,193 firm-year observations for 1,318 US public firms for the period 2009–2013. This study uses lagged regression analysis to test the direct and moderating roles of CSR in executive compensation.FindingsRegarding the direct role of CSR, this study finds that CEO compensation is positively related to CSR performance but not to firms’ issuance of CSR reports. This study also finds a positive moderating role of CSR in the relationship between CEO compensation and firms’ stock performance. However, the authors do not identify any role for CSR in the relationship between CEO compensation and accounting performance. The results also show a negative association of CSR in the relationship between CEO compensation and firm size.Originality/valueThis study fills a gap in the literature by providing empirical evidence on the direct association between CSR and CEO compensation and how the association between CEO compensation and firm performance is moderated by CSR scores. The novel findings of this study will benefit managers, boards of directors, shareholders and other stakeholders, including regulators and policymakers.
ABSTRACT This study investigates whether corporate governance can mitigate real earnings manageme... more ABSTRACT This study investigates whether corporate governance can mitigate real earnings management. In recent years, firms have been switching from accrual based to real earnings management and the incidence of real earnings management is also increasing. The role of corporate governance to reduce accrual based earnings management is well documented in the literature, however there is no firm evidence regarding the role of corporate governance to constrain real earnings management. To fill the gap in the literature, I examine whether corporate governance can play any role to reduce real earnings management. I find evidence that firms may engage in real earnings management either to avoid reporting losses or to meet analysts’ forecasts. Cross-sectional analysis reveals that these activities are less prevalent for the firms that have larger institutional investors. However, I fail to find any evidence regarding the role of board to prevent real earnings management.
Inadequate risk monitoring and executive incentive system of US financial institutions have been ... more Inadequate risk monitoring and executive incentive system of US financial institutions have been considered as significant factors in exacerbating the financial crisis of 2008. Regulators put efforts to reform the executive compensation system in the post-crisis period. In this study, we conduct a comparative analysis on the economic determinants of the compensation for chief executive officers (CEOs) between the pre and post financial crisis periods. We use the data from US financial service institutions, since this is the sector that has been mostly affected by the financial crisis. We find that the mean values of total compensation and its incentive components including cash bonus and long-term compensations reduced significantly in post-crisis period. The proportion of fixed salary to total compensation has increased whereas the bonus has decreased significantly from pre- to post-crisis periods. In pre-crisis period, total compensation is determined by stock performance, accounting profit, long-term growth and leverage of the firms, whereas in post-crisis period stock return and leverage are the major economic factors that influence total compensation. We also find that leverage is positively associated with total compensation and leverage of the firm negatively influence the sensitivity of the pay for performance in both pre- and post-crisis periods. But the influence of leverage on pay for performance is weaker in post-crisis period compared to pre-crisis period. The Dodd-Frank Act, enacted in 2011, empowered the shareholders’ say on CEO pay. This influences the CEOs to focus on short-term stock returns in order to satisfy the scrutiny of the empowered shareholders. Disregarding other economic factors and narrowing down the focus on stock return in determining the executive compensation in post-crisis period could bring unintended consequences, and hinder the firms to take wider forward-looking approaches for the long-term sustainability.
Dhaka Stock Exchange Ltd. is one of the barometers of Bangladesh Economy. The DSE has become the ... more Dhaka Stock Exchange Ltd. is one of the barometers of Bangladesh Economy. The DSE has become the common buzz in the mind of the people of the Bangladesh for the functionality and different positive and negative event. Recently it is going through a reengineering process to become a systematic and efficient organization to serve and develop the capital market of Bangladesh. However, top management’s effort to make the DSE an effective organization is not going on in equal footing or in a balanced way. While, it has an efficient automated trading system, its other functions are done manually despite having one of the country's largest LANs & WANs. In order to understand the problem the study attempts to undertake analysis of system in the DSE. Subsequently it attempts to develop a DFD to facilitate building a workable solution. Additionally, the study aims to suggest types of training and development measures to enable the employees acquire necessary skills to run the managerial-technological system.
This paper examines whether the corporate social responsibility (CSR) performance of target firms... more This paper examines whether the corporate social responsibility (CSR) performance of target firms influences the acquisition premiums paid by the acquirers. Using U.S. public merger and acquisition (M&A) deals, I find that acquisition premiums increase in the targets’ perceived CSR quality, an effect incremental to previously-documented drivers of such premiums. These findings are also robust to (1) using different proxies for CSR measures and acquisition premiums, and (2) considering various dimensions of CSR (environment, community, employee, product, and diversity). Additional analysis reveals that the positive association between target firms’ CSR quality and acquisition premiums is stronger for high-CSR acquirers and larger targets. Overall, I combine the CSR and M&A literature by demonstrating that superior quality CSR performance affects acquisition premiums positively and thus expand our understanding of the value-driven role of CSR initiatives in a unique way.
SYNOPSIS This study investigates whether executives of socially responsible firms carry forward c... more SYNOPSIS This study investigates whether executives of socially responsible firms carry forward corporate social policies when they move to different firms. In order to identify the carryforward effects of top executives on corporate social responsibility (CSR) policies, we construct a data set by tracking the movements of executives across firms. We designate top executives as CSR Champions if their firms demonstrate superior-quality CSR practices. We find that the entrance of a CSR Champion into a new firm improves its CSR performance, and we label these incremental effects CSR-Carryforward Effects. Our findings are stronger in firms with poor past CSR performance. Overall, this study extends the executive and CSR-related literature by documenting that executives of socially responsible firms have positive CSR-related effects on their new firms. JEL Classifications: M12; M14.
This study investigates whether corporate governance can mitigate real earnings management. Speci... more This study investigates whether corporate governance can mitigate real earnings management. Specifically, this study investigates the role of the board and institutional owners to mitigate real earnings management. In recent years, firms have been switching from accrual-based earnings management to real earnings management, and the incidence of real earnings management has increased. The role of corporate governance to reduce accrual-based earnings management is well documented in the literature; however, there is no firm evidence regarding the role of corporate governance to constrain real earnings management. In order to fill the gap in the literature, this paper examines whether corporate governance, specifically the board of directors and institutional investors, play any role to reduce real earnings management. In this study, I find the evidence that firms engage in real earnings management either to avoid reporting losses or to meet analysts’ forecasts. The cross-sectional analysis reveals that these activities are less prevalent for the firms that have larger institutional investors; however, no evidence regarding the role of the board to prevent real earnings management is indicated. Keywords : corporate governance, real earnings management, board, institutional investors .
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