Employee stock options and future firm performance: Evidence from option repricings

• 成果类型: Article
• 署名作者: Aboody, David; Johnson, Nicole Bastian; Kasznik, Ron
• 署名单位: Stanford University; University of California System; University of California Los Angeles; University of California System; University of California Berkeley
• 刊物名称: JOURNAL OF ACCOUNTING & ECONOMICS
• ISSN/ISSBN: 0165-4101
• DOI: 10.1016/j.jacceco.2009.12.003
• 发表日期: 2010
• 关键词: compensation; CONSEQUENCES; management; no

摘要

We investigate firms' operating performance subsequent to the repricing of executive and non-executive employee stock options. We find that, relative to non-repricers, repricing firms have a larger increase in operating income and cash flows in subsequent periods. This performance improvement is attributable to the underlying economic determinants of the decision to restore the options' incentive properties. However, only repricings of executive stock options are associated with improvement in performance; we find no such evidence for non-executive employees. Our findings suggest employee stock options provide sufficiently large incentive effects to favorably affect firms' performance, but primarily so at the executive level. (C) 2009 Elsevier B.V. All rights reserved.