Titre :

The effect of executive stock option delta and vega on the spin-off decision

Auteur(s) :

Mazur, Mieszko [Auteur]
Lille économie management - UMR 9221 [LEM]
Salganik-Shoshan, Galla [Auteur]

Titre de la revue :

Quarterly Review of Economics and Finance

Éditeur :

Elsevier

Date de publication :

2018-11-08

ISSN :

1062-9769

Mot(s)-clé(s) en anglais :

Spin-off
Divestiture
Stock option delta
Stock option vega
Executive compensation
Firm risk
Firm value

Discipline(s) HAL :

Sciences de l'Homme et Société/Gestion et management

Résumé en anglais : [en]

We investigate the role of CEO incentives around asset restructuring known as corporate spin-off. More specifically, we focus on executive stock option delta and vega vis-à-vis changes in firm value and firm riskiness in ...
Lire la suite >We investigate the role of CEO incentives around asset restructuring known as corporate spin-off. More specifically, we focus on executive stock option delta and vega vis-à-vis changes in firm value and firm riskiness in response to the corporate spin-off. Controlling for self-selection of the spin-off decision, we find that executive stock option vega is positively related to changes in firm value as well as changes in firm risk. Conversely, we find that executive stock option delta is negatively related to changes in firm value and firm risk. Finally, we estimate the Fazzari et al. (1988) investment model and show that at the business segment level, CEO incentives are positively linked to capital spending. Overall, our study extends the current literature by documenting the role of executive stock option delta and vega in the context of corporate spin-offs.Lire moins >

Langue :

Anglais

Vulgarisation :

Non

Collections :

• Lille Économie Management (LEM) - UMR 9221

Source :

Harvested from HAL