Taxation and executive compensation: Evidence from stock options

• 成果类型: Article
• 署名作者: Bird, Andrew
• 署名单位: Carnegie Mellon University
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2017.11.006
• 发表日期: 2018
• 页码: 285-302
• 关键词: Executive compensation; taxation; Stock options

摘要

Understanding the effects of taxes on executive compensation provides insight into the process determining this compensation and is a key input to top income tax rate policy. A 2010 tax reform in Canada, which greatly increased the effective tax rate on stock option compensation for a subset of firms, provides a natural experiment with which to address this issue. Difference-in-differences estimates suggest that this tax increase resulted in an immediate reduction in both stock option grants and the fraction of total compensation made up of stock options with limited, if any, substitution towards other components of compensation. (C) 2017 Elsevier B.V. All rights reserved.