標題: | Real options and earnings-based bonus compensation |
作者: | Huang, Hsing-Hua Huang, Hongming Shih, Pai-Ta 資訊管理與財務金融系 註:原資管所+財金所 Department of Information Management and Finance |
關鍵字: | Real options;Earnings-based bonus compensation;Ownership shares compensation;Capital structure |
公開日期: | 1-八月-2012 |
摘要: | This study extends the works of Mauer and Sarkar (2005) and Andrikopoulos (2009) by incorporating a regime-dependent earnings-based bonus into managerial compensation. Examining the individual effects of ownership shares and earnings-based bonus compensation, we find that the former provides managers with incentives to issue debt, whereas the latter induces the opposite result, although consistent impacts are found for the two types of compensation on both agency costs and the optimal investment decisions of managers. When managerial compensation comprises both ownership shares and an earnings-based bonus, there are significant differences in the effects of these two types of performance compensation on managers' optimal investment and financing decisions, agency costs, optimal debt ratios and credit spreads, as a result of the specific interactions between the investment and financing decisions. (C) 2012 Elsevier B.V. All rights reserved. |
URI: | http://hdl.handle.net/11536/16575 |
ISSN: | 0378-4266 |
期刊: | JOURNAL OF BANKING & FINANCE |
Volume: | 36 |
Issue: | 8 |
結束頁: | 2389 |
顯示於類別: | 期刊論文 |