The DOI matches its Crossref record; 58 of the 58 references it cites were found in a registry or an index.
Equity Vesting and Investment
Open accessAbstract
This paper links the CEO’s concerns for the current stock price to reductions in real investment. We identify short-term concerns using the amount of stock and options scheduled to vest in a given quarter. A one standard deviation increase in vesting equity is associated with an annualized 0.2% decline in growth in R&D plus net capital expenditure (scaled by total assets), 11% of the average investment-to-assets ratio. Vesting equity is also associated with positive analyst forecast revisions and positive earnings guidance during the same quarter. More broadly, by introducing a measure of incentives that is determined by equity grants made several years prior, and thus unlikely to be driven by current investment opportunities, our paper provides evidence that CEO contracts affect real decisions.
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Cites
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Testing for Weak Instruments in Linear IV Regression
Stock, J. H., & Yogo, M. (2005) · Identification and Inference for Econometric Models · doi:10.1017/cbo9780511614491.006 · Cited by 7,211
The economic implications of corporate financial reporting
Graham, J. R., Harvey, C. R., & Rajgopal, S. (2005) · Journal of Accounting and Economics · doi:10.1016/j.jacceco.2005.01.002 · Cited by 6,316
New Evidence on Measuring Financial Constraints: Moving Beyond the KZ Index
Hadlock, C. J., & Pierce, J. R. (2010) · Review of Financial Studies · doi:10.1093/rfs/hhq009 · Cited by 5,533
Earnings management through real activities manipulation
Roychowdhury, S. (2006) · Journal of Accounting and Economics · doi:10.1016/j.jacceco.2006.01.002 · Cited by 5,405
Performance Pay and Top-Management Incentives
Jensen, M. C., & Murphy, K. J. (1990) · Journal of Political Economy · doi:10.1086/261677 · Cited by 5,083
Dividend Policy under Asymmetric Information
MILLER, M. H., & ROCK, K. (1985) · The Journal of Finance · doi:10.1111/j.1540-6261.1985.tb02362.x · Cited by 3,441
The Influence of Institutional Investors on Myopic R&D Investment BehaviorPreprint
Bushee, B. J. (1998) · SSRN Electronic Journal · Cited by 3,198
Real and Accrual-Based Earnings Management in the Pre- and Post-Sarbanes-Oxley Periods
Cohen, D. A., Dey, A., & Lys, T. Z. (2008) · The Accounting Review · doi:10.2308/accr.2008.83.3.757 · Cited by 3,078
Efficient Capital Markets, Inefficient Firms: A Model of Myopic Corporate Behavior
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Cited by
Innovation Strategy of Private Firms
Gao, H., Hsu, P.-H., & Li, K. (2018) · Journal of Financial and Quantitative Analysis · doi:10.1017/s0022109017001119 · Cited by 253
Institutional investor cliques and governance
Crane, A. D., Koch, A., & Michenaud, S. (2019) · Journal of Financial Economics · doi:10.1016/j.jfineco.2018.11.012 · Cited by 214
Metadata
- Authors
- Edmans, A., Fang, V. W., & Lewellen, K. A.
- Venue
- The Review of Financial Studies
- Publisher
- Oxford University Press (OUP)
- Published
- 2017-03-27
- Volume
- 30
- Issue
- 7
- Pages
- 2229-2271
- ISSN
- 0893-9454 (ISSN-L)
- 1465-7368
- OpenAlex
- W3125001718
- Cited by
- 361
- References
- 58
- FWCI
- 78.02
- Type
- journal article
- Language
- en
- Open access
- bronze
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Bibliographic data: Semantic Scholar, OpenAlex, Crossref.
Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.
