JABM JOURNAL of ACCOUNTING - BUSINESS & MANAGEMENT
Vol 18 No 1 (2011): April

The Economic Determinants of Executive Stock Options Grants in Portuguese Firms

Sandra Alves (Unknown)

Article Info

Publish Date
04 Apr 2011

Abstract

This study investigates the economic justifications of stock options grants in Portuguese firms. We hypothesize that the agency theory (firm size, firm risk, diversification and investment opportunities), financial (liquidity constraints and leverage), ownership (equity held by managers and ownership concentration) and board structure may influence the grant of stock options in Portuguese firms. Using a sample of 160 observations (40 firm-year observations from 2003 to 2006), from Portuguese listed firms we find that the probability of granting stock options increases with the firms size, when firms face liquidity constraints and managerial ownership is high, and decreases with firms risk, when diversification is high and when firms have high levels of investment opportunities and of leverage.

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Journal Info
JABM JOURNAL of ACCOUNTING - BUSINESS & MANAGEMENT
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Abbrev

Publisher

STIE Malangkucecwara

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Other

Description

Journal of Accounting, Business and Management (JABM) provides a scientific discourse about accounting, business, and management both practically and conceptually. The published articles at this journal cover various topics from the result of particular conceptual analysis and critical evaluation to ...