01324nas a2200169   4500008004100000245009200041210006900133260000900202300001200211490000700223520073100230653001200961100002000973700001700993700002001010856012401030       2001                        eng d00aThe Performance of Firms Before and After They Adopt Accounting-Based Performance Plans0 aPerformance of Firms Before and After They Adopt AccountingBased  c2001  a205-2220 v413 aThis paper examines the long-run performance of firms before and after they adopt accounting-based performance plans. We test if the change in compensation policy is a response to a prior performance problem or is a signal to the market that firm performance will improve over current performance levels. Our findings are consistent with the signaling hypothesis. Stock prices increase at the announcement of the adoption of a performance plan apparently signaling previously private information regarding improved future performance. A related benefit of adoption may well be a better incentive-alignment contract for managers and shareholders but the strongest evidence points to a credible disclosure of future performance.10aFinance1 aBrooks, Raymond1 aMay, Don, O.1 aMishra, Chandra  uhttps://dev.business.oregonstate.edu/biblio/performance-firms-and-after-they-adopt-accounting-based-performance-plans-0