What does this research mean for the field?

The adoption of the IFRS 15 revenue recognition standard significantly increases CEO compensation through rent-seeking behavior facilitated by managerial discretion, particularly in firms with weak corporate governance. Novelty: ClaimNovelty.INCREMENTAL. Consensus alignment: ConsensusAlignment.NEUTRAL.

What question did this study set out to answer?

This research aims to analyze how the adoption of IFRS 15 affects CEO compensation, focusing on managerial discretion in profit adjustment.

May 20, 2026KOREAN JOURNAL OF MANAGEMENT ACCOUNTING RESEARCH

The Impact of the New Revenue Recognition Standard (IFRS 15) Adoption on CEO Compensation：Evidence from Korea

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Authors

SCSun-ae Cho HCHyoung-Seok Choo TMTaegon MoonKangwon National University

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Implication

Analyzes the effects of IFRS 15 adoption on CEO compensation, suggesting regulatory considerations for corporate governance.

Key Points

This research aims to analyze how the adoption of IFRS 15 affects CEO compensation, focusing on managerial discretion in profit adjustment.
Utilized an OLS regression model on a sample of 2,230 firm-year observations from 2013 to 2022.
Controlled for firm-specific variables like size, debt ratio, and governance characteristics.
Conducted additional cross-sectional and time-series analyses to enhance robustness.
Post-IFRS 15 adoption, CEO compensation increased significantly, linked to managerial discretion.
The effect was more pronounced in firms with weak governance or high discretion.
Increased CEO compensation is associated with rent-seeking behavior rather than performance-based incentives.

Cite This Study

Cho et al. (2026) studied this question.

synapsesocial.com/papers/6a0d50cdf03e14405aa9cd32 https://doi.org/10.31507/kjmar.2026.4.26.1.221

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The Impact of the New Revenue Recognition Standard (IFRS 15) Adoption on CEO Compensation：Evidence from Korea

Discussion

Member takes

Implication

Key Points

Cite This Study

The Impact of the New Revenue Recognition Standard (IFRS 15) Adoption on CEO Compensation：Evidence from Korea

Discussion

Member takes

Implication

Key Points

Cite This Study

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