Earticle

초록

영어

In the setting of Hall and Murphy (2000, 2002), we can observe that the executive’s incentives to increase the stock price can be very low on some ranges of the stock price. So we propose a new stock option compensation scheme whose payoffs are concave with respect to the stock price when the stock price at option’s maturity exceeds the strike price. This kind of options allows the executive to have greater incentives compared with the traditional option model. Hall and Murphy (2000, 2002) also analyze the incentive effects only on the grant date of the options. We find that the incentives at some time (after the grant date) might not be optimal even though the firm chose the moneyness of the option that gave the executive the optimal incentives on the grant date.

목차

Abstract
 1. Introduction
 2. The Model
 3. Incentive Effects of Log-Call Options
  3.1 Incentive Effects on the Grant Date
  3.2 Incentive Effects after the Grant Date
 4. Conclusion
 Appendix
 References
 Figure

키워드

저자

• Kwangil Bae [ Graduate School of Finance and Accounting at KAIST ]
• Jangkoo Kang [ Graduate School of Finance and Accounting at KAIST ]
• Hwa-Sung Kim [ College of Business Administration at Kyung Hee University ] Corresponding Author.

참고문헌

발행기관

간행물

표지보기 관심저널 등록

• 간행물명

  한국재무학회 학술대회

• 간기

  부정기

• 수록기간

  2006~2024

• 십진분류

  KDC 325 DDC 330