A test of the Bolton-Scheinkman-Xiong hypothesis of how speculation affects the vesting time of options granted to directors

Radulescu, Doina Maria; Egger, Peter (2014). A test of the Bolton-Scheinkman-Xiong hypothesis of how speculation affects the vesting time of options granted to directors. Journal of Corporate Finance, 29, pp. 511-519. Elsevier

Full text not available from this repository. (Request a copy)

This paper investigates empirically the Bolton, Scheinkman, and Xiong (2006) hypothesis, according to which initial shareholders may provide incentives to managers to take actions that stimulate speculative bubbles. We test this hypothesis with data on up to 8,544 directors and up to 1,677 companies between 2004-2008. Using vesting time as a measure of the short-term performance weighting in CEO compensation and various alternative measures of the extent of speculation, the findings support the hypothesis: vesting time decreases with more intensive speculation. The results prove robust in various empirical model specifications.

Item Type:

Journal Article (Original Article)

Division/Institute:

11 Centers of Competence > KPM Center for Public Management

UniBE Contributor:

Radulescu, Doina Maria

Subjects:

300 Social sciences, sociology & anthropology > 350 Public administration & military science

ISSN:

0929-1199

Publisher:

Elsevier

Language:

English

Submitter:

BORIS Import

Date Deposited:

25 Sep 2014 16:28

Last Modified:

29 Jun 2020 14:29

URI:

https://boris.unibe.ch/id/eprint/58651

Actions (login required)

Edit item Edit item
Provide Feedback