Abstract
We document the presence of systematic backfilling in the ExecuComp compensation database stemming from its addition of firms and executives. While backfilling is advantageous because it provides greater data coverage and scope for detailed analyses of compensation issues, it can also lead to over-sampling of certain types of firms and managers, generating a data-conditioning bias. We identify which observations were backfilled and find that backfilled observations differ along important dimensions, ranging from firm performance to the level and structure of manager compensation. We highlight several relations in which controlling for backfilling significantly impacts inferences and we offer researchers methods to identify backfilled observations.
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