Behavioral Accounting and Corporate Governance

DOI: 10.5176/2251-1997_AF-19

Authors: Dipl.-Kfm., MA. Christian Offenhammer and Prof. Dr. Thomas Berndt

Abstract:
In this article compensation regimes as an application of behavioral accounting research in the field of corporate governance are investigated and underlying incentive regimes are described. During the financial crisis 2007-2009 UBS Switzerland revised its compensation regime for executive and non-executive managers. We find that the revised compensation regime incorporates substantial elements of the prevailing behavioral theories of principle-agency and stewardship and that different forms of variable and fixed compensation components are established with the intend to adjust to the specific type of management behavior.
Keywords: Behavioral accounting, corporate governance, Switzerland