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- W2894928740 abstract "This paper analyzes the effects of stock option incentives on inefficient investment. Specifically, based on the motive of design, we divide stock option incentives into incentive-driven and welfare-driven incentives. Our research is based on the panel data of 511 Chinese listed companies that declared stock option incentives from 2010 to 2014, including both incentive-driven and welfare-driven incentives. Our research shows that different types of stock option incentives have different effects on inefficient investment. Generally, incentive-driven stock option incentives reduce inefficient investment, whereas welfare-driven stock option incentives do not reduce inefficient investment, but increase it. However, there is a weakening effect in state-owned enterprises due to two opposite factors, numerous restrictions and more self-interested managers. Additionally, the paper provides implications that some stock options are manipulated by managers in the designing stage in order to pursue self-interests, and therefore monitoring abnormal share price movement and performance hurdles is important to safeguard the wealth of shareholders and promote effective motivation for managers." @default.
- W2894928740 created "2018-10-12" @default.
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- W2894928740 date "2018-09-29" @default.
- W2894928740 modified "2023-09-28" @default.
- W2894928740 title "Motives of Stock Option Incentive Design, Ownership, and Inefficient Investment" @default.
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- W2894928740 doi "https://doi.org/10.3390/su10103484" @default.
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