The Determinants and Impacts of Executive Stock Options
(2008)Department of Business Administration
- Abstract
- The thesis main objective is to establish the determinants for granting executive stock options and to examine their impact on performance for firms listed on OMXS30. The analysis is based on accounting data gathered from annual reports and Thomson Datastream. The empirical results display that firms grant stock options to mitigate the principal-agent problem. Furthermore, risk proves to be positively significant with executive stock options, implying that either executives increase the level of risk after being granted stock options or influence the decision of the remuneration towards stock options when the firm increase the level of risk, in purpose to boost the expected value of their options. No relation between executive stock... (More)
- The thesis main objective is to establish the determinants for granting executive stock options and to examine their impact on performance for firms listed on OMXS30. The analysis is based on accounting data gathered from annual reports and Thomson Datastream. The empirical results display that firms grant stock options to mitigate the principal-agent problem. Furthermore, risk proves to be positively significant with executive stock options, implying that either executives increase the level of risk after being granted stock options or influence the decision of the remuneration towards stock options when the firm increase the level of risk, in purpose to boost the expected value of their options. No relation between executive stock options and firm performance could be established. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/1344775
- author
- Gerdin, Rickard ; Mirzaie, Saeid and Lindberg, Victor
- supervisor
- organization
- year
- 2008
- type
- H1 - Master's Degree (One Year)
- subject
- keywords
- Executive Stock Options, Cross-Sectional Data, Firm Performance, Discretionary Accruals, Agency Theory, Management of enterprises, Företagsledning, management
- language
- Swedish
- id
- 1344775
- date added to LUP
- 2008-06-04 00:00:00
- date last changed
- 2012-04-02 17:11:22
@misc{1344775,
abstract = {{The thesis main objective is to establish the determinants for granting executive stock options and to examine their impact on performance for firms listed on OMXS30. The analysis is based on accounting data gathered from annual reports and Thomson Datastream. The empirical results display that firms grant stock options to mitigate the principal-agent problem. Furthermore, risk proves to be positively significant with executive stock options, implying that either executives increase the level of risk after being granted stock options or influence the decision of the remuneration towards stock options when the firm increase the level of risk, in purpose to boost the expected value of their options. No relation between executive stock options and firm performance could be established.}},
author = {{Gerdin, Rickard and Mirzaie, Saeid and Lindberg, Victor}},
language = {{swe}},
note = {{Student Paper}},
title = {{The Determinants and Impacts of Executive Stock Options}},
year = {{2008}},
}