Wenxia Ge was hired last July as an associate professor in accounting at the Telfer School of Management. She received her PhD in accounting from McGill University. We interviewed her to learn more about her research interest in executive compensation policy.
Why did you choose to study accounting? Any personal motivation?
Accounting is one of the key functions of almost any business. Accounting numbers are not “hard” numbers. They are affected by professional judgments and estimates, so there is a risk of management bias. My working experience as an accountant and an internal auditor in the banking industry inspired my research interests in financial reporting quality, auditing, bank loan contracting and bank risk-taking.
How did your PhD studies inform your current research program?
In my PhD, I was exposed to new developments in both accounting and corporate finance research, as well as rigorous research methodology courses. I was also expected to propose research ideas for my term papers and PhD dissertation. This experience helped shape my independent research capability and enabled me to conduct interdisciplinary research.
Do you have any new research highlights to share?
The pay gap between the CEO and other senior executives can either serve as “tournament incentives” or reflect managerial power. Regulators are concerned about the enlarging pay gap.
How can your research influence business in Canada?
My JBFA study suggests that the executive pay gap is a risk factor that auditors should consider when deciding the audit scope and depth. Since auditors are an important participant in financial markets, their views on the executive pay gap have major implications for designing optimal compensation policies for top executives. Thus, our findings can provide insights for boards of directors and compensation committees. For regulators, our results highlight the need to consider implementing executive compensation disclosure requirements.
About the author — Rania Nasrallah
Rania Nasrallah a rejoint le bureau de recherche Telfer en 2019. Elle a obtenu son doctorat en médecine à l'Université d'Ottawa et apporte à ce rôle plus de deux décennies d'expérience en recherche. Rania participe à tous les aspects du mandat du Bureau de la recherche et est responsable de fournir un large éventail de services aux membres du corps professoral et aux étudiants de recherche de deuxième et troisième cycle. Elle gère les subventions internes et les bourses d'études, et participe à la stratégie de communication de la recherche. Elle fournit également un soutien aux chercheurs avant l'attribution des subventions afin de maximiser le succès du financement au niveau national et international. En outre, elle travaille en étroite collaboration avec le Vice-doyen à la recherche pour élaborer et mettre en œuvre des stratégies visant à améliorer le financement et la vélocité de la recherche à Telfer, conformément à notre vision pour créer un meilleur Canada et un meilleur monde pour tous.
Xin Ding joined the Telfer PhD in Management program in 2019, specializing in accounting, under the co-supervision of Professor Walid Ben-Amar and Professor Lamia Chourou.
