CEOPay and BoardPay versus Real Earnings Management: uma Análise de Empresas Brasileiras.

This study analyzes if the compensation of executives and the board of directors influences the Real Earnings Management (REM) of firms in the IBRX50 index in the period 2017-2020. We used panel regression, considering the level of REM as the dependent variable measured from Roychowdhury (2006). As main results, we find that there is an inverse relationship between CEO compensation and REM and also an inverse relationship between board compensation and REM. Unlike previous studies that focus on the management of accounting results, this study focuses on the management of operating results, and we did not find in Brazil any study of this nature, which also crossed with the compensation of the manager/director, taking a new perspective at the earnings management and compensation practices for Brazilian firms. [ABSTRACT FROM AUTHOR]