Economic Determinants of Management Lobbying: Evidence from FASB'S Stock Option Expensing Proposal in 2004*

2008 ◽  
Author(s):  
Wei Chern Koh
Keyword(s):  
Stock Option ◽  
Economic Determinants

Stock option modification under SFAS 123(R)

2014 ◽  
Vol 12 (2) ◽  
pp. 177-195
Author(s):  
Steven Balsam ◽  
Il-woon Kim ◽  
David Ryan ◽  
Hakjoon Song
Keyword(s):  
Financial Reporting ◽  
Stock Prices ◽  
Stock Price ◽  
Stock Option ◽  
Policy Makers ◽  
Content Type ◽  
Economic Determinants ◽  
Political Costs ◽  
Price Performance ◽  
Political Cost

Purpose – The purpose of this paper is to examine the motivations for and variations in terms of stock option modifications under Statement of Financial Accounting Standards (SFAS) 123(R). Stock options are used to motivate and retain employees. Unfortunately, when stock prices decline, existing options lose their incentive value. In response, firms look for ways to re-incentivize their employees. Their choices include issuing additional options and/or modifying existing grants. Design/methodology/approach – We investigate the economic determinants of stock option modification post SFAS 123(R), such as financial reporting cost, shareholder/political cost and employee incentive and retention. Our analysis is based on 67 sample firms that modify their stock option plans from 2005 to 2008 and 67 control firms constructed based on size, industry, year and stock price performance for the prior five years. Findings – The results show that loss firms are more likely to modify their options, which supports the argument that financial reporting costs influence the decision to modify. We find support for the shareholder/political costs hypothesis, as the overhang ratio is positively associated with the decision to modify. However, we find no evidence that modifications substitute for additional option grants. We find that politically sensitive larger firms are more likely to incorporate more shareholder friendly measures such as excluding executives from modification or providing shareholders the opportunity to vote on modification. Originality/value – This is the first paper examining the economic determinants of stock option modification under SFAS 123(R). Our findings provide some insights regarding economic determinants of SFAS 123(R) for accounting policy-makers and investors.

scholarly journals Determinants Of Stock Option Use By Chinese Companies

2015 ◽  
Vol 31 (4) ◽  
pp. 1355 ◽  
Author(s):  
Lei Luo
Keyword(s):  
Stock Returns ◽  
Stock Option ◽  
State Ownership ◽  
Economic Factors ◽  
Optimal Contract ◽  
Economic Determinants ◽  
Managerial Power ◽  
Different Types ◽  
Book To Market Ratio ◽  
The Impact

<p>Using a sample of 225 stock option grants over the period January 2006 to June 2013, we examine the economic determinants of stock option use in Chinese firms from the optimal contract and managerial power approaches. We investigate whether the same economic factors can explain stock option awards to different types of target grantees (including directors and senior executives, technical and business personnel, and special talents introduced in the future). In consistent with the optimal contract theory, we find that the scope of stock option plans is negatively associated with ?rm size, dividend dummy, and three ownership measures (managerial ownership, blockholder ownership, and foreign ownership). Furthermore, we find that the scope of stock option plans is positively related to book-to-market ratio and prior stock returns, but the coefficients are significant only when the stock options awards cover senior managers. We also find that the impact of risk is different when options are targeted to different types of employees. In consistent with the managerial power theory, we ?nd that the scope of stock option plans is inversely related to state ownership. As for the other economic factors, their degree of impact is found to be different across a broad base of employees. In general, ownership variables are more relevant to key technical and business personnel, while firm characteristics variables are more relevant to top management.</p>

Socio-Economic Determinants Of Morbidity In Kuwait

2017 ◽  
pp. 29
Author(s):  
نديم بورنى ◽  
محمد علي الرمضان ◽  
ريم الحاجى
Keyword(s):  
Economic Determinants

Socio economic determinants of child labour in selected districts of Khyber Pakhtunkhwa, Pakistan

2018 ◽  
Vol 2 (1) ◽  
pp. 47-60
Author(s):  
Nabeela Begum ◽  
Javed Iqbal ◽  
Hina
Keyword(s):  
Labour Market ◽  
Family Size ◽  
Household Income ◽  
Child Labour ◽  
Primary Data ◽  
Economic Determinants ◽  
Khyber Pakhtunkhwa ◽  
Socioeconomic Characteristics ◽  
Education Organization ◽  
Children Education

This study examines the determinants of child labour in Mardan and Nowshera districts of Khyber Pakhtunkhwa. Primary data on socioeconomic characteristics of children engaged and did not engage in child labour were obtained from Labour Education Organization Mardan. Age of the children and family size are positively and education is negatively and significantly associated with the probability of children participation in labour market. The probability of child labour is more with the household income although with a very low coefficient value which is contrary to our expectations and may ne indicative that child labour could be a major source of household income. This study suggests that subsidies may be provided to families for their children education. Family size is also positively related to the child labour, therefore steps may be taken towards encouraging small family sizes and thereby reducing the child labour.

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