الفهرس 
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Abstract
This study investigates the role executive compensation structure plays in post-acquisition fair value measurement of goodwill at Purchase Price Allocation (PPA). It examines the relationship of CEO earning based and equity based compensation with the amount recognized as goodwill after mergers and acquisitions. Also, the study investigates the effect of CEO characteristics such as gender, age and tenure on goodwill recognition. After SFAS 142 is applied in 2002, goodwill required to be impaired based on fair value estimates instead of being amortized like other identifiable intangible assets. This may lead CEOs to report more goodwill to avoid depreciation cost and thus increase reported income and consequently their bonus. Besides, high income reported resulted from higher goodwill will increase company stock prices and thus CEOs stock options grants and/or enable them to exercise it at higher value. Based on a sample of 110 public U.S business combinations completed in the service sector between 2002 and 2015; first, I find that the relationship between CEO bonus and the amounts recognized as goodwill is not linear but correlates only if he/she has longer tenure. Second, I find that CEOs with higher options exercised in the acquisition announcement year, recognize more goodwill. This relationship becomes stronger when CEO has long tenure. Third, the results don’t support the relationship between stock options grants and goodwill. Finally, I find negative relationship between higher representation of CEO male and goodwill. Overall, my findings indicate that executive compensation structure affects the fair value accounting for acquired assets and liabilities after a business combination. This study is the first to combine both earning based and equity based compensation and test their impact on fair value measurement of goodwill in U.S context and shed the light on CEO tenure interaction effect on goodwill recognition.
Keywords: CEO. Executive Compensation, Fair Value, Mergers, Acquisitions, Bonus, stock option grants, options exercised, Goodwill.