Management accounting & control
Does stock option compensation encourage managerial risk taking
Dekker, prof.dr. H.C. | Kuang, Y.F
MCA, 2008
Decision makers who have nothing to lose, but a lot to gain, may exhibit an unhealthy preference for riskier projects. Evidence from several studies shows that stock option rewards help overcome managers'natural risk aversion, by providing a floor to avoid losses while allowing them to benefit from upside gains. Rewarding managers for real performance is strongly recommended in Corporate Governance Codes (including Tabaksblat in the Netherlands). This article shows that compared to traditional stock options, performance-vested stock options may further increase managerial preference for risky projects and encourage risk-seeking behavior; which clearly is not always desirable.
Deze auteur publiceerde ook
Dekker, prof.dr. H.C. | Ding, R. | Groot, prof.dr. T.L.C.M. | 2007
Downloads: 480
Management accounting &am...
Groot, prof.dr. T.L.C.M. | Kuang, Y.F | 2008
Downloads: 558
Corporate governance
Gomethvrakurn, S. | Kuang, Y.F | 2010
Downloads: 419
Financial accounting en v...
Dekker, prof.dr. H.C. | Groot, prof.dr. T.L.C.M. | Schoute, dr. M. | 2005
Downloads: 608
Management accounting &am...
Dekker, prof.dr. H.C. | 1997
Downloads: 699
Management accounting &am...
Dekker, prof.dr. H.C. |
Downloads: 3.343
PE Management Accounting ...
Kater, K. de | Kuang, Y.F | 2009
Downloads: 351
Management accounting &am...
Dekker, prof.dr. H.C. | Groot, prof.dr. T.L.C.M. | 2004
Downloads: 452
Management accounting &am...
Dekker, prof.dr. H.C. | Groot, prof.dr. T.L.C.M. | 2002
Downloads: 513
Management accounting &am...
Dekker, prof.dr. H.C. | 2010
Downloads: 817
Management accounting &am...
Anderen downloaden ook deze publicaties