...Namarta Kumari Bajaj; Mujeeb u Rehman Bhayo; Syed Faisal Hassan Bukhari; Ghulam Abbas Purpose This paper examines the impact of executive stock-based compensation on organizational capital. Specifically, the use of equity-based incentives, such as stock options, impacts long-term investment...

...Rajesh Pathak; Satish Kumar; Ranajee Ranajee Purpose The purpose of this paper is to examine the cross-sectional predictive power and the information content of volatility smirks for future stock returns using single stock options. Design/methodology/approach The study uses Fama-Macbeth...

...Hui Di; Steven A. Hanke; Wei‐Chih Chiang Purpose This paper aims to examine whether the substitution of employee stock options (ESOs) for debt occurs for firms with different tax status classifications throughout the conditional distribution of interest expense before and after the implementation...

... States of America Pricing Stock options It is well known that the value of an over‐the‐counter option is reduced when the payoff is vulnerable to the credit risk of its writer. This is because the full payoff may not be made if the writer is experiencing financial distress. The impact...

...Nina T. Dorata; Melissa A. Williams; Timothy B. Michael; Ramesh P. Rao Purpose The purpose of this paper is to examine the risk‐incentive effect of CEO stock options in the banking industry. Design/methodology/approach For a sample of industrial mergers, Williams and Rao find that the risk...

... to explain the dynamic relationship between leverage and managers’ risk incentives, and empirically tested with data on executive stock option grants. The model relies on the observation that the risk sensitivity of a call option does not monotonically increase or decrease in the value of the underlying...

... research Stock options Stock markets Volatility Predictive validity Hedging United Kingdom Volume 29 Number 11 2003 17 Hedging Strategies Using LIFFE Listed Equity Options by Dritsakis Nikolaos, Associate Professor of Econometrics, Department of Applied Informatics, University of Macedonia...

... industries. Finds that rising IOS firms generally reduced their dividends and market debt‐to‐equity ratio. Adds that all three groups increased their use of stock option plans but this was only significant for the IOS rising firms. Briefly comments on the underlying reasons for the findings...

...Wm. Gerard Sanders Outlines previous research on the role of executive compensation contracts in reducing conflicts of interest between ownership and control; and develops hypotheses on the effects of chief executive officer stock options and share ownership on subsequent firm performance. Suggests...

...Mark C. Anderson Reviews previous research on the timing of employee stock option exercise decisions and share price performance before and after insider trading. Analyses the 1992‐1993 exercise behaviour of top executives at 65 large US firms using the Black‐Scholes (1973) value (less anticipated...