Arnold, Markus C.; Gillenkirch, Robert M. (2005). Stock Options and Dividend Protection. Journal of institutional and theoretical economics / Zeitschrift für die gesamte Staatswissenschaft, 161(3), pp. 453-472. Mohr Siebeck 10.1628/093245605774259318
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Stock-option programs (SOPs) became the dominant compensation instrument for top management in the nineties. Usually, they are not dividend-protected, i.e., any dividend payout decreases the value of a manager's options. Empirical evidence shows that this results in a significant decrease in the level of corporate dividends and, at the same time, in an increase in share repurchases. This paper analyzes different forms of dividend protection and addresses the importance of dividend protection in SOPs. Finally, the paper relates the theoretical analysis to empirical work on the link between share repurchases and SOPs.
Item Type: |
Journal Article (Original Article) |
|---|---|
Division/Institute: |
03 Faculty of Business, Economics and Social Sciences > Department of Business Management > Institute for Accounting and Controlling > Managerial Accounting |
UniBE Contributor: |
Arnold, Markus Christopher |
Subjects: |
300 Social sciences, sociology & anthropology > 330 Economics |
ISSN: |
0932-4569 |
Publisher: |
Mohr Siebeck |
Language: |
English |
Submitter: |
Lynn Carole Selhofer |
Date Deposited: |
11 Mar 2020 13:23 |
Last Modified: |
05 Dec 2022 15:37 |
Publisher DOI: |
10.1628/093245605774259318 |
BORIS DOI: |
10.7892/boris.141310 |
URI: |
https://boris.unibe.ch/id/eprint/141310 |
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