causing earnings persistence (FAR_PER) to increase
or to imply compensation paid to business CEOs
which is motivation for them who organize and
create tactics in order to make additional value
for the business relating to earnings in otherwise
direction—compensation payment reduces,
making earnings persistence increase. This can
be found that compensation paid in cash fi gure
reduces but compensation paid to executives in
otherwise form—that of rights of stock options
turnover instead; or the rights of owning stock
options which evolve possibly in line of benefi ts as
motivation for executives in the research of Jensen
and Murphy (1990), Bryan Nash Patel (2002). Such a
research aims at importance of compensation paid
to executives in foreign countries who have bought
stock options, and the company perspective that
gets a high chance to enlarge itself uses a portion
of stock options as compensation for executives
which will not affect earnings directly