An International Meeting of the American Accounting Association American Accounting Association 2006 Annual Meeting August 6–9, 2006 Washington, D.C.

Brian D. Cadman
Northwestern University

Sandy Klasa
University of Arizona

Steve Matsunaga
University of Oregon

Abstract: We address the question of whether using samples drawn from the ExecuComp database affects the results of empirical studies. We find significant differences between ExecuComp and non-ExecuComp firms with regard to the structure of CEO equity and cash compensation. Also, we document that specific inferences from prior work are markedly different for ExecuComp and non-ExecuComp firms. Finally, we find that ExecuComp and non-ExecuComp firms differ systematically with regard to equity ownership and other governance characteristics. In particular, CEOs of ExecuComp firms tend to have lower levels of equity ownership creating a greater separation of ownership and control while ExecuComp firms have a higher proportion and concentration of institutional ownership and are more likely to have an independent nominating committee. Overall, our results suggest that using the ExecuComp database can have a significant effect on the results of empirical corporate governance studies.

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