skip to main content
Language:
Search Limited to: Search Limited to: Resource type Show Results with: Show Results with: Search type Index

Does Option-Based Compensation Affect Payout Policy? Evidence from FAS 123R

Journal of financial and quantitative analysis, 2020-02, Vol.55 (1), p.291-329 [Peer Reviewed Journal]

Copyright University of Washington, School of Business Administration Feb 2020 ;Copyright © Michael G. Foster School of Business, University of Washington 2018 ;ISSN: 0022-1090 ;EISSN: 1756-6916 ;DOI: 10.1017/S0022109018001114

Full text available

Citations Cited by
  • Title:
    Does Option-Based Compensation Affect Payout Policy? Evidence from FAS 123R
  • Author: Ferri, Fabrizio ; Li, Nan
  • Subjects: Accounting ; Compensation ; Dilution ; Dividends ; Earnings per share ; Executive compensation ; Fair value ; Grants ; Institutional investments ; Quantitative analysis ; Stock ; Stock options ; Trends
  • Is Part Of: Journal of financial and quantitative analysis, 2020-02, Vol.55 (1), p.291-329
  • Description: Does option-based compensation affect payout policy? To address this question, we examine the adoption of mandatory expensing of stock options. Our identification strategy exploits the fact that the reduction in option-based compensation after the accounting change varies with the firm-specific expected accounting impact. Across a battery of tests, we do not find that (accounting-driven) reductions in option-based pay cause dividends to increase or repurchases to decrease. Our results contrast with the widely held belief that option-based pay has a significant causal influence on payout policy and cast doubts on its role in the shift from dividends to repurchases.
  • Publisher: Seattle: Cambridge University Press
  • Language: English
  • Identifier: ISSN: 0022-1090
    EISSN: 1756-6916
    DOI: 10.1017/S0022109018001114
  • Source: ProQuest Central
Back to results list
INSPIRE LIBRARY - TON DUC THANG UNIVERSITY (84-028) 37 755 057 Feedback
19 Nguyen Huu Tho St. Dist.7, HCM thuvien@tdtu.edu.vn

Copyright © 2017 INSPIRE LIBRARY - TON DUC THANG UNIVERSITY

Searching Remote Databases, Please Wait