CEO Pay Cuts and Investors’ Perceptions of Earnings Quality

We thank Elaine Henry (editor) and two anonymous referees for their constructive comments. We are also grateful for the helpful comments from Arthur Morris, David Yang, Zili Zhuang, Iny Hwang, Hwa-Wei Huang, Che-Chia Chang, Ling-Chin Chan, Hsuan-Chu Lin, and Yu-Ting Hsieh as well as session participants at the 2022 Taiwan Accounting Association Annual Conference, the 2023 American Accounting Association Annual Meeting and the 2024 Southwest Region Meeting, and seminar participants at National Sun Yat-sen University. Ting-Kai Chou acknowledges the financial support from the National Science and Technology Council of Taiwan [Grant No. 112-2410-H-006 -056] and the “Center for Innovative FinTech Business Models” of National Cheng Kung University, sponsored by the Ministry of Education, Taiwan, R.O.C.. Wan-Ci Huang, Ting-Tsen Yeh, and Yin-Hsuan Chao declare no conflicts of interest.

Ting-Kai Chou and Wan-Ci Huang, National Cheng Kung University, College of Management, Department of Accountancy and Center for Innovative FinTech Business Models, Tainan, Taiwan; Ting-Tsen Yeh, Louisiana State University Shreveport, College of Business, Accounting and Business Law, Shreveport, LA, USA; Yin-Hsuan Chao, National Cheng Kung University, College of Management, Department of Accountancy, Tainan, Taiwan.

Editor’s note: Accepted by Elaine Henry, under the Senior Editorship of Bin Srinidhi.