scholarly journals Executive Compensation and Firm Performance in New Zealand: The Role of Employee Stock Option Plans

2021 ◽  
Vol 14 (1) ◽  
pp. 31
Author(s):  
David K. Ding ◽  
Ya Eem Chea
Keyword(s):  
New Zealand ◽  
Firm Performance ◽  
Executive Compensation ◽  
Value Creation ◽  
Stock Option ◽  
First Year ◽  
Employee Stock Option ◽  
The Cost ◽  
Positive Effect

We examine the role of employee stock option plans (ESOPs) in mitigating agency problems in New Zealand firms. We find that ESOPs have a significant and positive effect on firm performance relative to their non-ESOP counterparts. This relation appears within a year from the first ESOP announcement, and for two to four years after the announcement. Our results show that ESOPs improve corporate performance by 10 times the cost of the ESOPs’ adoption in the first year of issue. The improvement persists for four years after the first issuance. These findings confirm the effectiveness of employee stock option plans for companies issuing ESOPs compared with companies that do not issue ESOPs, and show how much the value creation of ESOPs contributes to these firms.

scholarly journals Kinerja Perusahaan sebagai Pemediasi Pengaruh Penerapan Employee Stock Option Plan (ESOP) pada Nilai Perusahaan

2020 ◽  
Vol 30 (4) ◽  
pp. 993
Author(s):  
Ni Ayu Wisma Dewi ◽  
Ida Bagus Putra Astika
Keyword(s):  
Firm Performance ◽  
Firm Value ◽  
Stock Options ◽  
Limited Liability ◽  
Stock Option ◽  
Employee Stock Option ◽  
Employee Stock Ownership ◽  
Cooperative Relationship ◽  
The Relationship ◽  
Positive Effect

Limited liability company (Ltd) based on a contract cooperative relationship which is the basis of agency theory with the risk of conflict. The solution to minimize is the employee stock ownership program with the Employee Stock Option Plan (ESOP) strategy. The purpose of this study is to obtain empirical evidence of the relationship of stock options granted’s number to the firm value through firm performance. This research was conducted at companies listed in the BEI and conducted ESOP grants in 2014-2018. Samples obtained using purposive sampling were 48 observations. Data analysis technique used is path analysis. The results showed that the number of stock options granted had a positive effect on firm performance, firm performance had a positive effect on firm value, the number of shares options granted had a positive effect on firm value, and firm performance mediated the relationship between the number of shares options granted and firm value. Keywords: Employee Stock Option Plan; Firm Performance; Firm Value.

Locking down behavioural compliance: The role of emotion and emotion regulation in breaches of COVID-19 mitigation measures in Aotearoa New Zealand

2021 ◽  
pp. 135910532110299
Author(s):  
Terise Broodryk ◽  
Kealagh Robinson
Keyword(s):  
Public Health ◽  
Young Adults ◽  
New Zealand ◽  
Health Behaviours ◽  
Mitigation Measures ◽  
Aotearoa New Zealand ◽  
High Knowledge ◽  
The Cost ◽  
Insight Into

Although anxiety and worry can motivate engagement with COVID-19 preventative behaviours, people may cognitively reframe these unpleasant emotions, restoring wellbeing at the cost of public health behaviours. New Zealand young adults ( n = 278) experiencing nationwide COVID-19 lockdown reported their worry, anxiety, reappraisal and lockdown compliance. Despite high knowledge of lockdown policies, 92.5% of participants reported one or more policy breaches ( M  = 2.74, SD = 1.86). Counter to predictions, no relationships were found between anxiety or worry with reappraisal or lockdown breaches. Findings highlight the importance of targeting young adults in promoting lockdown compliance and offer further insight into the role of emotion during a pandemic.

scholarly journals DAMPAK STRUKTUR MODAL PADA SENSITIVITAS PENERAPAN KOMPENSASI OPSI SAHAM KARYAWAN TERHADAP KINERJA

2017 ◽  
Vol 14 (1) ◽  
pp. 1
Author(s):  
Nur Fadjrih Asyik
Keyword(s):  
Firm Performance ◽  
Capital Structure ◽  
Stock Options ◽  
Stock Option ◽  
Company Performance ◽  
Employee Stock Option ◽  
Sensitivity Level ◽  
The Impact ◽  
Option Compensation ◽  
Stock Option Compensation

This study aims to test whether the management that receive compensation in the form of stock options having an positive impact on company performance. This study considers the external performance measurement by identifying Cumulative Abnormal Return (CAR). In addition, this study aims to test whether the company's capital structure affects the sensitivity level of employee stock option compensation and firm performance. Capital structure is measured with debt to equity ratio. The result indicates that the proportion of Employee Stock Option Plan (ESOP) influence company performance in accordance with the predictions. This shows that the more stock options offered to employees then came a sense of belonging which resulted in more motivated managers to improve company performance. Furthermore, the higher the market performance of companies that can be achieved, the higher the profit (gain) will be obtained by the recipient of stock options. In addition, this study also shows that the impact of stock option grants at the company's performance declined with the greater capital structure of liability. This shows that the capital structure of liabilities will lower the sensitivity level of employee stock option compensation and firm performance. The higher the company's liabilities would reduce the rights of the owner of the dividends each period in accordance with the ownership of shares held since the company must take into account the interest costs to be paid to the creditor.

scholarly journals A Review of Employee Stock Option Plans: Panacea or Pandora’s Box for Firm Performance

2017 ◽  
Vol 10 (1) ◽  
pp. 1201-1207
Author(s):  
Neha Kalra ◽  
Dr. Rajesh Bagga
Keyword(s):  
Firm Performance ◽  
Firm Value ◽  
Stock Options ◽  
Recent Literature ◽  
Academic Research ◽  
Stock Option ◽  
Research And Practice ◽  
Employee Stock Option ◽  
Compensation Package ◽  
Theoretical Foundations

Employee stock option Plans (ESOPs) have gathered enormous attention in recent decades and have become the most controversial component of the compensation package. Organizations around the globe have been using ESOPs to compensate their employees at managerial and non-managerial levels. While traditionally the stock options were reserved for top management employees, lately there has been strong growth of broad-based plans primarily to increase firm value. Recent literature examining the effects of broad-based stock options are not limited to executive but available for all employees (Core and Guay, 2001; Oyer and Schaefer, 2005; Hallock and Olson, 2010, etc.). However, the shareholders have become increasingly apprehensive about the size and proliferation of adoption of stock option plans. Accordingly, they have been an issue of debate in both academic research and practice circles. The present paper outlines the theoretical foundations behind the use of ESOPs in the compensation mix and strives to address the controversy of whether or not stock options adoptions result in enhancement in firm value. Though the evidence is mixed on the implications of ESOPs, however, there exists robust support for a positive interrelationship between the adoption of these plans and firm performance for large sized firms. 

scholarly journals Transparency in extractive industry commodities trading

2020 ◽  
Author(s):  
Olle Östensson
Keyword(s):  
Financial Management ◽  
Extractive Industry ◽  
Market Participants ◽  
Conflict Minerals ◽  
Public Financial Management ◽  
Almost All ◽  
The Cost ◽  
Positive Effect ◽  
Responsible Sourcing

The paper reviews the debate about transparency in extractive industry commodities trade. It examines the obstacles to improved transparency. A critical review of the experience with estimating losses from a lack of transparency concludes that many of the published estimates of losses from transfer mispricing and misinvoicing suffer from methodological deficiencies and appear to be exaggerations. The role of finance in extractive commodities trade is briefly discussed and it is noted that lending to companies owned by the state may affect the government’s standing with donors and investors. The most important transparency and responsible sourcing initiatives are reviewed. The initiatives appear to have had some positive effect on public financial management, investment climate, and economic growth. The experience of government-initiated responsible sourcing, including for conflict minerals, concludes that initiatives must include all or almost all market participants and that the cost of due diligence be equitably shared. Finally, a number of recommendations are made.

scholarly journals The Current Role of Osteoclast Inhibitors in Patients with Prostate Cancer

2018 ◽  
Vol 2018 ◽  
pp. 1-9 ◽  
Author(s):  
Diomidis Kozyrakis ◽  
Dionyssios Paridis ◽  
Stefanos Perikleous ◽  
Konstantinos Malizos ◽  
Anastasios Zarkadas ◽  
...  
Keyword(s):  
Prostate Cancer ◽  
Locally Advanced ◽  
Fragility Fractures ◽  
Bone Mass Loss ◽  
Skeletal Related Events ◽  
The Cost ◽  
Positive Effect ◽  
Selection Of ◽  
Refractory Malignancy

Purpose. Prostate cancer (PCa) is one of the most frequently diagnosed malignancies worldwide. Hormonal deprivation therapy is a well-established treatment for locally advanced or metastatic diseases but exposes patients to the risk of osteoporosis and fragility fractures. Furthermore, the tropism of the PCa cells to osseous metastases increases the incidence of skeletal-related events (SREs). Methods. A nonsystematic review of the international literature was performed in respect to the use of osteoclast inhibitors zoledronic acid (ZA) and denosumab (DEN) in PCa patients. Results. DEN and ZA have proved their efficacy in preventing osteoporosis and bone mass loss in patients treated with hormonal therapy with no proven superiority of one agent over the other. However, the effectiveness in reducing fragility fractures has been proved only for DEN so far. In metastatic-free castrate-sensitive high-risk PCa patients, ZA has not shown any efficacy in preventing osseous metastasis, and evidence is lacking in favor or against the use of DEN. The use of osteoclasts inhibitors had no evident positive effect in overall and disease-specific survival in this group of patients. In advanced castrate-refractory malignancy, DEN has shown clinical superiority over ZA in preventing new SRE but not in overall survival. Conclusion. Superiority of DEN over ZA has been proved only in advanced castrate refractory disease in terms of preventing new SRE. In the rest of the cases, the selection of either agent should be based on the clinical condition of each patient and the cost of the treatment.

Congressional Intervention in the Standard-Setting Process: An Analysis of the Stock Option Accounting Reform Act of 2004

2007 ◽  
Vol 21 (1) ◽  
pp. 1-22 ◽  
Author(s):  
David B. Farber ◽  
Marilyn F. Johnson ◽  
Kathy R. Petroni
Keyword(s):  
Stock Options ◽  
Political Action ◽  
Fair Value ◽  
Stock Option ◽  
Financial Accounting Standards Board ◽  
Employee Stock Option ◽  
Setting Process ◽  
Action Committee ◽  
The Cost ◽  
The Impact

We examine H.R. 3574, the Stock Option Accounting Reform Act of 2004 (the Act), which sought to prevent the Financial Accounting Standards Board (FASB) from requiring the expensing of employee stock options at fair value. We find that employee stock option expense under the Act would be approximately 2 percent of what it would be under the FASB's preferred method. We also find that House members supporting the Act were more likely to be Republican, to be conservative, and to have received larger Political Action Committee (PAC) contributions. Finally, the larger the impact of H.R. 3574 on the amount of stock option expense reported by the firm for employees who are not top-five executives, the more contributions the firm's PAC made to House members and to members of the committee that approved the Act. This result suggests that corporate opposition to the mandatory expensing of stock options at fair value is not driven solely by concerns of top-five executives about the cost of recognizing their own options.

Ownership structure and the cost of equity in the European context

2020 ◽  
Vol 28 (3) ◽  
pp. 485-514 ◽  
Author(s):  
Fabio La Rosa ◽  
Francesca Bernini ◽  
Roberto Verona
Keyword(s):  
Ownership Structure ◽  
Value Relevance ◽  
Equity Capital ◽  
Mediating Effect ◽  
Cost Of Equity ◽  
Anglo Saxon ◽  
Content Type ◽  
The Cost ◽  
Positive Effect

Purpose Based on the institutionalized agency theory, this paper aims to analyses the role of earnings management (EM) in mediating the relationship between ownership structure (OS) and the cost of equity capital (COE). Design/methodology/approach The authors test the above relationship by investigating a sample of 249 European non-financial listed companies during 2005-2012. The authors adopt different measures for both EM and COE and identify three main types of ownership by the majority share of the ultimate owners. Path analysis is used to explore the role of direct, mediated (i.e. EM) and total effects of OS on COE. Findings While OS directly affects COE, the results support the idea that an EM-mediating effect contributes to further explain this relationship in some ownership structures. Particularly European listed family-owned firms experience lower COE owing to the prevailing direct and negative effect of OS, despite the fact that both accrual and real EM mediate and have a positive effect on COE. In financial institutions-owned firms, only a direct and positive effect can be observed on COE while state-owned firms do not have a direct influence on the COE, although they do reduce real EM, which, in turn, decreases the COE in a mediated effect. Further analysis comparing the Anglo-Saxon context with Continental Europe shows more detailed results. Practical implications The study marks its entry into the international debate on the evolution in the value relevance of accounting information by arguing that the COE implications of EM depend on institutional factors such as OS and the context investigated. Originality/value The paper contributes to extant finance, accounting and corporate governance literature by providing new, robust evidence on the mediating role of EM in defining COE for different ownership types and their diverse risk-taking propensities in Continental Europe, which differs from the Anglo-Saxon context both institutionally and legally.

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