Strategic News Releases in Equity Vesting Months

• 成果类型: Article
• 署名作者: Edmans, Alex; Goncalves-Pinto, Luis; Groen-Xu, Moqi; Wang, Yanbo
• 署名单位: University of London; London Business School; Centre for Economic Policy Research - UK; University of London; London Business School; Chinese University of Hong Kong; University of London; London School Economics & Political Science; Sungkyunkwan University (SKKU)
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhy070
• 发表日期: 2018
• 页码: 4099
• 关键词: stock option awards; ceo; performance; liquidity

摘要

We find that CEOs release 20% more discretionary news items in months in which they are expected to sell equity, predicted using scheduled vesting months. These vesting months are determined by equity grants made several years prior and thus unlikely to be driven by the current information environment. The increase arises for positive news, but not neutral or negative news, nor nondiscretionary news. News releases fall in the month before and month after the vesting month. News in vesting months generates a temporary increase in stock prices and market liquidity, which the CEO exploits by cashing out shortly afterwards.