Book/Tax Conformity and Equity Compensation
نویسندگان
چکیده
منابع مشابه
Conformity, correlation and equity∗
Coordination between agents can be modelled using correlated equilibrium and a ‘device’ allocating roles to players. That coordination takes place within a social context suggests properties that one may expect of a correlated equilibrium. In this paper, given a partition of the player set into (social) groups, we demonstrate the existence of an approximate correlated equilibrium satisfying a w...
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What drives the compensation in equity markets? This article shows that perceptions of long run growth and economic uncertainty in the economy play an important role in determining the risk in equity markets. The size of the market risk premium, the level of the risk free rate, volatility of asset prices, and differences in the risk compensation across assets are shown to be related to risks pe...
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This study estimates chief executive officers’ (CEO) subjective valuation of their equity holdings using their revealed preferences conveyed by their decisions to hold or exercise their stock options and to hold or sell their equity shares. Using a random utility framework, I find that the subjective value of equity holdings is associated with both economic and behavioral factors, and that the ...
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I study managers' risk-taking behavior and how it is affected by equity-based compensation. I find that in response to an exogenous increase in takeover protection in Delaware during the mid-1990s, managers lower firm risk by 5%. I also find that the decrease in firm risk is concentrated among firms with low managerial equity-based incentives. In particular, firms with low CEO portfolio sensiti...
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It is well accepted that aligning managerial incentives with those of stock holders enhances shareholder value. In theory models, such alignment is usually modeled as giving managers a stake in the realized cash flows of the firm’s projects. However, such a stake, which entails a manager holding on to her equity position until all cash flow uncertainty is resolved, can lead a risk averse manage...
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ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2008
ISSN: 1556-5068
DOI: 10.2139/ssrn.1153465