Executive compensation, share repurchases and investment expenditures: Econometric evidence from US firms

被引：19

作者：

Bhargava A. ^{[1
]}

机构：

[1] Department of Economics, University of Houston, Houston, TX

来源：

Review of Quantitative Finance and Accounting | 2013年 / 40卷 / 3期

关键词：

Compustat and ExecuComp databases; Dynamic random effects models; Endogeneity; Investment; Maximum likelihood; Share repurchases; Stock options;

D O I：

10.1007/s11156-011-0260-1

中图分类号：

学科分类号：

摘要：

This paper modeled the dynamic inter-relationships between average salary, bonus, and stock options granted to top executives of 700 US firms using a merged ExecuComp and Compustat database. The effects of stock options granted and exercised on firms' share repurchases and research and development and investment expenditures were investigated, taking into account simultaneity and distributional misspecification aspects. First, firms' total assets, intangible assets, market-to-book value, and share repurchases were positively associated with the values of stock options granted. Second, stock options exercised in the previous year were significant predictors of share repurchases indicating that firms avoided dilution of earnings per share. Third, share repurchases and stock options granted were negatively associated with expenditures on research and development and long-term investments. Overall, the results suggest that high levels of stock options granted to executives and share repurchases are unlikely to have beneficial effects for raising future productivity. © 2011 Springer Science+Business Media, LLC.

引用

页码：403 / 422

页数：19

共 41 条

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