The DOI matches its Crossref record.
Good Timing: CEO Stock Option Awards and Company News Announcements
Abstract
This paper analyzes the timing of CEO stock option awards, as a method of investigating corporate managers’ influence over the terms of their own compensation. In a sample of 620 stock option awards to CEOs of Fortune 500 companies between 1992 and 1994, I find that the timing of awards coincides with favorable movements in company stock prices. Patterns of companies’ quarterly earnings announcements are consistent with an interpretation that CEOs received stock option awards shortly before favorable corporate news. I evaluate and reject several alternative explanations of the results, including insider trading and the manipulation of news announcement dates.
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Citations
Cited by
Bebchuk, L. A., Cremers, K. J. M., & Peyer, U. C. (2011) · Journal of Financial Economics · doi:10.1016/j.jfineco.2011.05.006 · Cited by 993
Executive Pay, Hidden Compensation and Managerial Entrenchment
Kuhnen, C. M., & Zwiebel, J. H. (2007) · doi:10.2139/ssrn.972622 · Cited by 116
Metadata
- Authors
- Yermack, D.
- Venue
- The Journal of Finance
- Publisher
- JSTOR
- Published
- 1997-06
- Volume
- 52
- Issue
- 2
- Pages
- 449
- ISSN
- 0022-1082 (ISSN-L)
- OpenAlex
- W2096422203
- Cited by
- 353
- References
- 0
- FWCI
- 41.79
- Type
- journal article
- Language
- en
- Open access
- closed
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Registry, retraction, Cites and statistics results are computed, not judged, with one exception: a printed reference that no index lists is read once by a model before it counts as a citation error. Claims are extracted by a model and kept only when their quote appears verbatim in the text; each cited source is then checked, with a model’s help, for whether it says what the claim relies on. Those verdicts can be wrong — read the claim’s quote and the cited source before relying on one.
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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.
