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The Determinants and Impacts of Executive Stock Options

Gerdin, Rickard; Mirzaie, Saeid and Lindberg, Victor (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)
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author
Gerdin, Rickard; Mirzaie, Saeid and Lindberg, Victor
supervisor
organization
year
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
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},
  keyword      = {Executive Stock Options,Cross-Sectional Data,Firm Performance,Discretionary Accruals,Agency Theory,Management of enterprises,Företagsledning, management},
  language     = {swe},
  note         = {Student Paper},
  title        = {The Determinants and Impacts of Executive Stock Options},
  year         = {2008},
}