Stock Options, Idiosyncratic Volatility, and Earnings Quality

被引：7

作者：

Alam, Pervaiz ^{[1
]}

Liu, Min ^{[2
]}

Liu, Zhefeng ^{[3
]}

Peng, Xiaofeng ^{[4
]}

机构：

[1] Kent State Univ, Coll Business Adm, Dept Accounting, Kent, OH 44242 USA

[2] ASA Inst, Business Div, New York, NY 11201 USA

[3] Brock Univ, Goodman Sch Business, St Catharines, ON, Canada

[4] Univ Toledo, Coll Business & Innovat, Dept Accounting, Toledo, OH 43606 USA

来源：

REVIEW OF PACIFIC BASIN FINANCIAL MARKETS AND POLICIES | 2015年 / 18卷 / 02期

关键词：

Stock options; CEO compensation; executive compensation; earnings quality; earnings management; idiosyncratic volatility;

D O I：

10.1142/S0219091515500113

中图分类号：

F8 [财政、金融];

学科分类号：

0202 ;

摘要：

The value of stock options increases in both stock prices and volatility. It suggests that options might engender incentives for managers to increase both stock prices and volatility. Recent studies have documented a negative association between earnings quality and idiosyncratic volatility: Hence, the lower the earnings quality, the greater the idiosyncratic volatility, and the higher the value of stock options. This study investigates whether there is a link between CEO equity compensation and earnings quality. Using a simultaneous system of equations, we find negative correlations between the two, suggesting that managers have incentives to reduce earnings quality.

引用

页数：30

共 68 条

[1] CEO stock option awards and the timing of corporate voluntary disclosures
Aboody, D
Kasznik, R
[J]. JOURNAL OF ACCOUNTING & ECONOMICS, 2000, 29 (01) : 73 - 100
[2] Chief Executive Officer Equity Incentives and Accounting Irregularities
Armstrong, Christopher S.
Jagolinzer, Alan D.
Larcker, David F.
[J]. JOURNAL OF ACCOUNTING RESEARCH, 2010, 48 (02) : 225 - 271
[3] Baber WR, 2009, WORKING PAPER
[4] Bar-Gill O., 2003, WORKING PAPER
[5] Private information, earnings manipulations, and executive stock-option exercises
Bartov, E
Mohanram, P
[J]. ACCOUNTING REVIEW, 2004, 79 (04) : 889 - 920
[6] Bartov E., 1998, J APPL CORP FINANC, V11, P89, DOI DOI 10.1111/J.1745-6622.1998.TB00080.X
[7] Stock option compensation and the likelihood of meeting analysts' quarterly earnings targets
Bauman M.P.
Shaw K.W.
[J]. Review of Quantitative Finance and Accounting, 2006, 26 (3) : 301 - 319
[8] Managerial power and rent extraction in the design of executive compensation
Bebchuk, LA
Fried, JM
Walker, DI
[J]. UNIVERSITY OF CHICAGO LAW REVIEW, 2002, 69 (03) : 751 - 846
[9] CEO incentives and earnings management
Bergstresser, Daniel
Philippon, Thomas
[J]. JOURNAL OF FINANCIAL ECONOMICS, 2006, 80 (03) : 511 - 529
[10] The world price of earnings opacity
Bhattacharya, U
Daouk, H
Welker, M
[J]. ACCOUNTING REVIEW, 2003, 78 (03) : 641 - 678

← 1 2 3 4 5 6 7 →