The DOI matches its Crossref record; 21 of the 21 references it cites were found in a registry or an index.
The Effect of Executive Stock Option Plans on Stockholders and Bondholders
Abstract
Executive stock option plans have asymmetric payoffs that could induce managers to take on more risk. Evidence from traded call options and stock return data supports this notion. Implicit share price variance, computed from the Black‐Scholes option pricing model, and stock return variance increase after the approval of an executive stock option plan. The event is accompanied by a significant positive stock and a negative bond market reaction. This evidence is consistent with the notion that executive stock options may induce a wealth transfer from bondholders to stockholders.
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Citations
Cites
Theory of the firm: Managerial behavior, agency costs and ownership structure
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The pricing of options and corporate liabilities
Black, F., & Scholes, M. (1973) · Journal of Political Economy · doi:10.1086/260062 · Cited by 29,074
Practical Nonparametric Statistics
Groggel, D. J. (2000) · Technometrics · doi:10.1080/00401706.2000.10486067 · Cited by 11,041
ON THE PRICING OF CORPORATE DEBT: THE RISK STRUCTURE OF INTEREST RATES*
Merton, R. C. (1974) · The Journal of Finance · doi:10.1111/j.1540-6261.1974.tb03058.x · Cited by 10,581
Brown, S. J., & Warner, J. B. (1985) · Journal of Financial Economics · doi:10.1016/0304-405x(85)90042-x · Cited by 6,488
Risk Reduction as a Managerial Motive for Conglomerate Mergers
Amihud, Y., & Lev, B. (1981) · The Bell Journal of Economics · doi:10.2307/3003575 · Cited by 2,772
Corporate performance and managerial remuneration
Murphy, K. J. (1985) · Journal of Accounting and Economics · doi:10.1016/0165-4101(85)90026-6 · Cited by 1,755
Practical Nonparametric Statistics
Bhapkar, V. P., & Conover, W. J. (1972) · Technometrics · doi:10.1080/00401706.1972.10488994 · Cited by 1,505
Dodd, P., & Warner, J. B. (1983) · Journal of Financial Economics · doi:10.1016/0304-405x(83)90018-1 · Cited by 956
Managerial Incentives and Corporate Investment and Financing Decisions
AGRAWAL, A., & MANDELKER, G. N. (1987) · The Journal of Finance · doi:10.1111/j.1540-6261.1987.tb03914.x · Cited by 714
Cited by
Managerial Entrenchment and Capital Structure Decisions
BERGER, P. G., OFEK, E., & YERMACK, D. L. (1997) · The Journal of Finance · doi:10.1111/j.1540-6261.1997.tb01115.x · Cited by 1,534
Measuring Abnormal Bond Performance
Bessembinder, H., Kahle, K. M., Maxwell, W. F., & Xu, D. (2009) · Review of Financial Studies · doi:10.1093/rfs/hhn105 · Cited by 655
An equilibrium model of incentive contracts in the presence of information manipulation
Goldman, E., & Slezak, S. L. (2006) · Journal of Financial Economics · doi:10.1016/j.jfineco.2005.05.007 · Cited by 466
The exercise and valuation of executive stock options
Carpenter, J. N. (1998) · Journal of Financial Economics · doi:10.1016/s0304-405x(98)00006-3 · Cited by 435
Managing foreign exchange risk with derivatives
Brown, G. W. (2001) · Journal of Financial Economics · doi:10.1016/s0304-405x(01)00049-6 · Cited by 329
Metadata
- Authors
- DeFUSCO, R. A., JOHNSON, R. R., & ZORN, T. S.
- Venue
- The Journal of Finance
- Publisher
- Wiley
- Published
- 1990-06
- Volume
- 45
- Issue
- 2
- Pages
- 617-627
- ISSN
- 0022-1082 (ISSN-L)
- 1540-6261
- OpenAlex
- W2124762038
- Cited by
- 489
- References
- 21
- FWCI
- 9.39
- Type
- journal article
- Language
- en
- Open access
- closed
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- DeFUSCO, R. A., JOHNSON, R. R., & ZORN, T. S. (1990). The Effect of Executive Stock Option Plans on Stockholders and Bondholders. The Journal of Finance. https://doi.org/10.1111/j.1540-6261.1990.tb03707.x
Data sources
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.
