Full metadata record
| DC Field | Value | Language |
|---|---|---|
| dc.contributor | Graduate School of Business | en_US |
| dc.creator | Xia, Hui Harry | - |
| dc.identifier.uri | https://theses.lib.polyu.edu.hk/handle/200/6018 | - |
| dc.language | English | en_US |
| dc.publisher | Hong Kong Polytechnic University | - |
| dc.rights | All rights reserved | en_US |
| dc.title | High return, high risk : does stock option based CEO compensation encourage risk taking & its implications after the adoption of FAS 123R | en_US |
| dcterms.abstract | This study, through empirical evidence of 3,081 firms during the period of 1992-2009, show a strong causal relation between different CEO compensation components and firms' investment policy and firm risk. Specifically, the proportion of CEO option-based compensation is positively and significantly associated with firm's R&D expenditures and firm focus, while the proportion of cash-based and restricted stock compensation are negatively and significantly related. Such results are robust across alternative measures and statistical methodology. Furthermore, I find the non-linear relation between CEO option pay level and R&D investment with practical implications. Finally, following the implementation of FAS 123R in 2005, I provide new evidence that, despite a clear tendency of CEO option pay reduction and replacement with restricted stocks, option-based compensation remains as an effective motivation and even becomes a more efficient incentive for CEO to take risk on R&D investment and firm focus. | en_US |
| dcterms.extent | v, 107 leaves ; 30 cm. | en_US |
| dcterms.isPartOf | PolyU Electronic Theses | en_US |
| dcterms.issued | 2010 | en_US |
| dcterms.educationalLevel | All Doctorate | en_US |
| dcterms.educationalLevel | D.Mgt. | en_US |
| dcterms.LCSH | Hong Kong Polytechnic University -- Dissertations | en_US |
| dcterms.LCSH | Chief executive officers -- Salaries, etc. | en_US |
| dcterms.accessRights | restricted access | en_US |
Files in This Item:
| File | Description | Size | Format | |
|---|---|---|---|---|
| b23985987.pdf | For All Users (off-campus access for PolyU Staff & Students only) | 1.01 MB | Adobe PDF | View/Open |
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