The impacts of IT and CEO pay upon the firm's performance as measured by average performance ratio

The purpose of this research is to conduct a comparative analysis of the influences of information technology (IT) and CEO compensation upon the performance of US firms. The comparative analysis is based on the three theories of adjustment speed (AS) and their accompanied AS valuation (ASV) approaches in which the AS is assumed constant and fixed (Case 1), dynamic and variable (Case 2), and stochastic and dynamic (Case 3). The six research models proposed are fitted into a panel dataset involving 91 US firms over the time from 1999 to 2012. Due to the varying assumptions of the AS, we employ three different methods of estimation to carry out the huge amount of the empirical estimates of the six models. The analysis of the results amounts to answering seven research questions as set forth at the outset of the paper. The major findings are summarized in Section 6, whereas the managerial implications are discussed in Section 7.