Note(s): Presented in Table 7 Panel A are the findings for the regression analysis of the propensity score matched sample. Firm-year observations of CEOs who only receive discretionary bonuses in a year are matched with firm-year observations of CEOs who only receive formula bonuses in a year based on ROA Volatility, Return Volatility, CEO Tenure, CEO Duality, R&D to Sales, B/M Ratio, Loss, Size, Leverage, Annual Return, ROA, Year, and Industry. Shown in Column 1 are the results of logit regression; depicted in Column 2 are results of OLS regressions. *, **, and *** indicate that the estimated coefficients are statistically significant at 0.10, 0.05, and 0.01 level, respectively. P-values in brackets are from Wald tests of the logit regression and two-tailed t-tests of OLS regressions. The regressions control for year and 2-digit SIC code industry effects. All variables are defined in Appendix. Presented in Panel B is the comparison of observations in the propensity score matched sample. Reported in Column M1-M2 is the mean difference between Discretionary Bonus observations and Formula Bonus observations. The p-value is based on a two-tailed t-test