Do Broad-Based Option Compensation Plans Improve Future Firm Performance for Technology and Non-Technology Firms?

2006 ◽  
Author(s):  
Sandra Renfro Callaghan ◽  
Mary Harris Stanford ◽  
Chandra Subramaniam
Keyword(s):  
Firm Performance ◽  
Compensation Plans ◽  
Technology Firms ◽  
Option Compensation

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.

Knowledge sharing, intellectual capital and firm performance

2014 ◽  
Vol 52 (2) ◽  
pp. 230-258 ◽  
Author(s):  
Zhining Wang ◽  
Nianxin Wang ◽  
Huigang Liang
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
Intellectual Capital ◽  
Operational Performance ◽  
Relational Capital ◽  
Research Model ◽  
Content Type ◽  
Technology Firms ◽  
High Technology Firms

Purpose – The aim of this paper is to investigate the impact of knowledge sharing (KS) on firm performance and the mediating role of intellectual capital (IC). Design/methodology/approach – A research model was developed based on prior KS and IC studies. A survey was administered to a sample of high technology firms in China and 228 usable responses were collected. Structural equation modeling (SEM) was employed to test the research model. Findings – Tacit KS significantly was found to contribute to all three components of IC, namely human, structural and relational capital, while explicit KS only has a significant influence on human and structural capital. Human, structural and relational capital, enhance both operational and financial performance of firms. The effect of KS on firm performance is mediated by IC. Explicit KS has a greater effect on financial performance than operational performance, whereas tacit KS has a greater impact on operational performance than financial performance. Research limitations/implications – The sample of high technology firms in China might limit the generalization of the findings. Nonetheless, this study takes its lead from and extends prior research, thus providing a deepened understanding of the role of KS in organizational settings. Practical implications – The paper suggests that managers can enhance firm performance by enhancing their KS and IC. Managers can develop corresponding strategies based on the findings to achieve their specific performance goals. Originality/value – This is one of the first papers to examine how KS contributes to firm performance through the mediation of IC. It will add significant value for organizations trying to enhance their performance though KS practices.

scholarly journals Mechanisms for Incentivizing Top Managers of the Company in the Long Term

2021 ◽  
pp. 81-94
Author(s):  
I. I. Ordinartsev
Keyword(s):  
Large Scale ◽  
Synthesis Method ◽  
Developed Countries ◽  
Top Management ◽  
Compensation Plans ◽  
Scientific Methods ◽  
Top Managers ◽  
Legislative Framework ◽  
General Scientific ◽  
Option Compensation

Motivating and rewarding company employees requires constant development and improvement the remuneration of the top management of the company is especially difficult. For this, compensation plans are being developed, which can be conditionally divided into two groups: bonus and stock-based option programs. Bonus programs provide for large-scale remuneration of managers based on the company’s performance in the current year. Compensation plans that reward top management with shares are effective. Such programs are developed only for selected top managers who have a direct impact on the financial results of the company.The purpose of the study is to substantiate the optimal mechanisms for remunerating top managers in Russian conditions and to determine the directions for the development of compensation plans. The object of the research is the mechanisms of involvement and motivation of managers. The subject of the research is the remuneration of the top managers of the company. Methods and methodology of work. General scientific methods were used, such as analysis, synthesis, method of classification and typology, generalization, abstraction, modeling. It has been established that in Russia it is advisable to use «phantom» shares because the domestic legislative framework does not define the mechanisms of reward with shares as broadly as is customary in developed countries. It is also recommended to apply bonus programs with payments in installments for 2–3 years. Directions have been identified to improve the effectiveness of bonus and option compensation plans in Russia.

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

2018 ◽  
Vol 14 (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.

The impact of intellectual capital – knowledge management strategy fit on firm performance

2016 ◽  
Vol 54 (8) ◽  
pp. 1861-1885 ◽  
Author(s):  
Zhining Wang ◽  
Nianxin Wang ◽  
Jinwei Cao ◽  
Xinfeng Ye
Keyword(s):  
Knowledge Management ◽  
Firm Performance ◽  
Intellectual Capital ◽  
High Technology ◽  
Content Type ◽  
Technology Firms ◽  
Km Strategy ◽  
High Technology Firms ◽  
Strategy Fit ◽  
The Impact

Purpose The purpose of this paper is to focus on the fit between intellectual capital (IC) and knowledge management (KM) strategy and its impacts on firm performance. Design/methodology/approach Based on the fit view, the authors posit that firms can enhance performance by aligning the structure of their IC with KM strategy, as reducing the extent to which their actual IC profile deviate from the “ideal” profile when implementing certain type of KM strategy. Using survey data collected from 328 high technology firms in China, the authors tested the research model. Findings The more fit a firm’s IC is to its KM strategic type, the better operational and financial performance it can achieve. Research limitations/implications The sample of high technology firms in China might limit the generalization of the findings. Nonetheless, this study is based on and extends prior research, which provides a deepened understanding of the role of IC-KM strategy fit in organizational settings. Practical implications The paper suggests that firms should adjust their IC according to KM strategy they employ. According to the findings, managers can selectively develop IC to achieve performance goals under certain type of KM strategy. Originality/value As one of the first studies to investigate the relationship among IC, KM strategy and firm performance in a holistic way, it indicates that the IC-KM strategy fit can be a novel explanation for performance variances through the alignment of knowledge-based capability and strategy.

scholarly journals Impacts of Top Five Executives’ Compensation on Employee Wages

2021 ◽  
Vol 12 (1) ◽  
pp. 242
Author(s):  
Qianqian Li ◽  
Unyong Pyo
Keyword(s):  
Firm Performance ◽  
Executive Compensation ◽  
Top Management Teams ◽  
Incentive Compensation ◽  
Top Management ◽  
Top Executives ◽  
Technology Firms ◽  
Performance Sensitivity ◽  
Long Run ◽  
Negative Impacts

This paper studies the impacts of incentive compensation to top five executives on employee wages. We employ pay-performance sensitivity to measure executive incentive compensation. Using the sample during 1992 – 2017, we find that executive compensation has negative impacts on employee wages. In addition, we examine the impacts of executive incentive compensation on employee wages in different industries and find that the impacts are more severe in technology firms than in non-technology firms. Finally, we show that the executives with higher incentive compensation are more likely to suppress employee wages in financially safe firms. Our results suggest that while top management teams are compensated as a team on average, they are compensated as isolated individuals on other aspects. Furthermore, firm performance may not always improve in the long run by granting high incentive compensation to top executives.

Performance of Firms

2014 ◽  
pp. 310-332
Author(s):  
Soni Agrawal ◽  
Kishor Goswami ◽  
Bani Chatterjee
Keyword(s):  
Information Technology ◽  
Firm Performance ◽  
Significant Role ◽  
Service Provider ◽  
Business Processes ◽  
Competitive Advantages ◽  
Service Cost ◽  
Multiple Regressions ◽  
Technology Firms ◽  
Information Technology Firms

With the evolution of information technology, firms offshore outsource services to developing and low service cost countries to have cost as well competitive advantages. This is a growing practice, but there has been limited empirical attention in understanding the outsourcing phenomenon, particularly from the perspective of service provider firms that execute important business processes for their overseas clients. This shows the need to study the factors that play a significant role in the growing trend to outsource and why only a few service provider firms report success. In this chapter, the authors try to find factors that influence performance of service provider firms. Multiple regressions using four indicators of firm performance are carried out to see the influence of certain factors on Information Technology Enabled Service (ITES) firms’ performance.

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