Corporate Governance and the Design of Stock Option Contracts

2011 ◽  
Author(s):  
Zacharias Sautner ◽  
Martin Weber
Keyword(s):  
Corporate Governance ◽  
Stock Option ◽  
Option Contracts

scholarly journals Corporate governance and IPO underpricing: evidence from the italian market

2021 ◽  
Author(s):  
Emanuele Teti ◽  
Ilaria Montefusco
Keyword(s):  
Corporate Governance ◽  
Initial Public Offering ◽  
Boards Of Directors ◽  
Stock Option ◽  
Board Members ◽  
Ipo Underpricing ◽  
Italian Market ◽  
Public Offering ◽  
The Impact ◽  
Positive Effect

AbstractThis paper aims to analyse the impact of firms’ corporate governance characteristics on the degree of first-day returns (i.e., underpricing) in the Italian initial public offering (IPO) market. In particular, this work investigates the impacts of the characteristics of boards of directors (BoDs) and ownership structure on the underpricing of newly offered shares. By studying a sample of 128 Italian IPOs between 2000 and 2016, it is concluded that corporate governance characteristics affect the degree of first-day returns following a company’s IPO. More specifically, the size of the BoD negatively affects underpricing, while the ownership of institutional investors and board members has a positive effect on the degree of underpricing. Conversely, no significant evidence is found with regard to board independence, the number of female directors in the boardroom, the implementation of stock option plans and ownership concentration.

Executive stock option vesting conditions, corporate governance and CEO attributes: evidence from Australia

2016 ◽  
Vol 58 (2) ◽  
pp. 503-533 ◽  
Author(s):  
Xin Qu ◽  
Majella Percy ◽  
Jenny Stewart ◽  
Fang Hu
Keyword(s):  
Corporate Governance ◽  
Stock Option ◽  
Executive Stock Option ◽  
Ceo Attributes

scholarly journals Significance of Non-Price Variables in Price Discovery: An Empirical Study of Stock Option Market in India

2008 ◽  
Vol 33 (2) ◽  
pp. 15-24 ◽  
Author(s):  
Sandeep Srivastava ◽  
Surendra S Yadav ◽  
P K Jain
Keyword(s):  
Financial Markets ◽  
Price Discovery ◽  
Stock Option ◽  
Stock Index ◽  
Open Interest ◽  
Option Contracts ◽  
The Future ◽  
Intraday Data ◽  
Derivative Market ◽  
Option Market

The efficiency of the financial markets is important as it ensures increased productive efficiency and economic growth through better capital allocation. Price discovery is the central aspect of financial markets. The relatively efficient price signals also facilitate the participation of uninformed investors to make suitable portfolio choices. Derivative instruments like option contracts enhance informational efficiency of the underlying's market through better price discovery as these securities are expected to increase the flow of information in the market. Besides, they facilitate hedging of risk. In India, exchange-trade derivates are of recent origin in the stock market. This study investigates the significance of net open interest and trading volume in stock option and stock index option market to predict the underlying stock prices⁄index level. In the study, only 15 stock option contracts (having maturity of one-month) and Nifty options for the entire period, i.e., November 10, 2001 to November 2, 2004, have been analysed. The analysis could not be carried out for all the stocks in option segment because of the fact that the options were not traded or the trading range and volumes were too thin to justify any analysis. The major findings of the study are as follows: Net open interest of stock option is one of the significant variables in the determination of the future spot price of the underlying stock. Open interest-based predictors are statistically more significant than the volume-based predictors in the Indian context too as is the case for the US market. The trading behaviour of Indian investors is found to be different from their counterparts in the developed world. This difference can be attributed to: the nascent state of derivatives market in India extremely limited participation of institutional investors in the Indian stock derivative market because of regulatory restrictions; as such investors are allowed to use derivative securities mainly for hedging and arbitrage purposes only. The findings would definitely help the regulatory bodies in policy-making and further strengthening the efforts to promote the derivative market in India. There are many areas which are still unexplored and can be addressed by the future studies by using the intraday data and a larger sample for the stock options.

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