Journal article
The economic rationale for option backdating: incentive explanations
Managerial finance, Vol.39(11), pp.1004-1031
10/14/2013
Handle:
https://hdl.handle.net/2376/116038
Abstract
Purpose
– The purpose of this paper is to provide evidence in support of incentive and retention-based explanations for backdating.
Design/methodology/approach
– The authors use matching-firm techniques and the bivariate logistic model.
Findings
– Backdating firms tend to be younger and faster growing – the characteristics of firms with growing demand for skilled labor. Further, rather than experiencing poor performance, backdating firms tend to outperform matching firms in both prior- and post-backdating years.
Originality/value
– The results suggest that backdating reflects a firm's demand for valuable employees rather than strictly a manifestation of agency problems, as evidenced by previous study.
Metrics
12 Record Views
Details
- Title
- The economic rationale for option backdating: incentive explanations
- Creators
- Hongyan Fang - Southwestern University of Finance and Economic, Chengdu, ChinaDavid Whidbee - Washington State University, Pullman, Washington, USA
- Publication Details
- Managerial finance, Vol.39(11), pp.1004-1031
- Academic Unit
- Finance and Management Science, Department of
- Publisher
- Emerald Group Publishing Limited
- Identifiers
- 99900547556001842
- Language
- English
- Resource Type
- Journal article