Matches in SemOpenAlex for { <https://semopenalex.org/work/W2243061148> ?p ?o ?g. }
Showing items 1 to 72 of
72
with 100 items per page.
- W2243061148 abstract "In the capital markets, the 1990s have been the decade of executive stock options and the derivatives market. Legal scholars and economists have begun to realize that, in combination, these two trends raise a serious concern. Options are supposed to inspire better performance by tying pay to the stock price. Yet, what if an executive could use the derivatives market to simulate a sale of her option -- a practice known as -- without violating her contract with the firm? The incentive justification for option grants would no longer hold. This Article demonstrates that the tax law helps avert this consequence in the United States; this phenomenon, in turn, shows that the U.S. tax law performs an important corporate governance function, not previously recognized in the academic literature. The tax law discourages executives from hedging options (but not necessarily from hedging stock holdings, although such hedging raises somewhat different concerns). Whereas shareholders and executives should contract to ban options hedging, the existing tax barrier is a plausible substitute. Indeed, since the tax law already has reason to monitor and penalize hedging, it can perform this corporate governance function without significant new administrative costs. Yet the tax barrier is overbroad and potentially unstable. Indeed, it could unravel due to relatively minor changes in the tax law that seem far removed from corporate governance. Moreover, the tax barrier does not govern foreign executives who are not subject to U.S. tax. Accordingly, this Article recommends strengthening contractual and securities law constraints on hedging. It concludes with reflections about the capacity of tax to influence corporate governance, not only for the worse, as has widely been observed, but also sometimes for the better." @default.
- W2243061148 created "2016-06-24" @default.
- W2243061148 creator A5056487144 @default.
- W2243061148 date "1999-01-01" @default.
- W2243061148 modified "2023-09-26" @default.
- W2243061148 title "Executives and Hedging: The Fragile Legal Foundation of Incentive Compatibility" @default.
- W2243061148 doi "https://doi.org/10.2139/ssrn.163383" @default.
- W2243061148 hasPublicationYear "1999" @default.
- W2243061148 type Work @default.
- W2243061148 sameAs 2243061148 @default.
- W2243061148 citedByCount "7" @default.
- W2243061148 countsByYear W22430611482015 @default.
- W2243061148 crossrefType "journal-article" @default.
- W2243061148 hasAuthorship W2243061148A5056487144 @default.
- W2243061148 hasBestOaLocation W22430611482 @default.
- W2243061148 hasConcept C10138342 @default.
- W2243061148 hasConcept C120757647 @default.
- W2243061148 hasConcept C144133560 @default.
- W2243061148 hasConcept C162324750 @default.
- W2243061148 hasConcept C175444787 @default.
- W2243061148 hasConcept C190253527 @default.
- W2243061148 hasConcept C2779836051 @default.
- W2243061148 hasConcept C2780938662 @default.
- W2243061148 hasConcept C29122968 @default.
- W2243061148 hasConcept C34447519 @default.
- W2243061148 hasConcept C39389867 @default.
- W2243061148 hasConcept C51303962 @default.
- W2243061148 hasConcept C514942387 @default.
- W2243061148 hasConcept C55674860 @default.
- W2243061148 hasConceptScore W2243061148C10138342 @default.
- W2243061148 hasConceptScore W2243061148C120757647 @default.
- W2243061148 hasConceptScore W2243061148C144133560 @default.
- W2243061148 hasConceptScore W2243061148C162324750 @default.
- W2243061148 hasConceptScore W2243061148C175444787 @default.
- W2243061148 hasConceptScore W2243061148C190253527 @default.
- W2243061148 hasConceptScore W2243061148C2779836051 @default.
- W2243061148 hasConceptScore W2243061148C2780938662 @default.
- W2243061148 hasConceptScore W2243061148C29122968 @default.
- W2243061148 hasConceptScore W2243061148C34447519 @default.
- W2243061148 hasConceptScore W2243061148C39389867 @default.
- W2243061148 hasConceptScore W2243061148C51303962 @default.
- W2243061148 hasConceptScore W2243061148C514942387 @default.
- W2243061148 hasConceptScore W2243061148C55674860 @default.
- W2243061148 hasLocation W22430611481 @default.
- W2243061148 hasLocation W22430611482 @default.
- W2243061148 hasLocation W22430611483 @default.
- W2243061148 hasOpenAccess W2243061148 @default.
- W2243061148 hasPrimaryLocation W22430611481 @default.
- W2243061148 hasRelatedWork W1535606159 @default.
- W2243061148 hasRelatedWork W1540119489 @default.
- W2243061148 hasRelatedWork W1562911159 @default.
- W2243061148 hasRelatedWork W1809664444 @default.
- W2243061148 hasRelatedWork W2081362260 @default.
- W2243061148 hasRelatedWork W2085138720 @default.
- W2243061148 hasRelatedWork W2126725648 @default.
- W2243061148 hasRelatedWork W2185833814 @default.
- W2243061148 hasRelatedWork W221309547 @default.
- W2243061148 hasRelatedWork W2266833557 @default.
- W2243061148 hasRelatedWork W2278196452 @default.
- W2243061148 hasRelatedWork W3123144183 @default.
- W2243061148 hasRelatedWork W3123817539 @default.
- W2243061148 hasRelatedWork W3124027785 @default.
- W2243061148 hasRelatedWork W3125035949 @default.
- W2243061148 hasRelatedWork W3125268960 @default.
- W2243061148 hasRelatedWork W3125362379 @default.
- W2243061148 hasRelatedWork W3203397082 @default.
- W2243061148 hasRelatedWork W2096419206 @default.
- W2243061148 hasRelatedWork W3123224081 @default.
- W2243061148 isParatext "false" @default.
- W2243061148 isRetracted "false" @default.
- W2243061148 magId "2243061148" @default.
- W2243061148 workType "article" @default.