An empirical investigation of executive stock option granting in Malaysia
Ahmad Ibn Ibrahimy and
Rubi Ahmad ()
International Journal of Business Excellence, 2016, vol. 10, issue 4, 433-448
Ownership structure is an imperative factor in determining firm objectives, increasing the shareholders' wealth and disciplining the executives. Our study looks into the effectiveness of yearly executive stock option (ESO) granting as a corporate governance mechanism designed to reduce agency problems, thereby increasing firm value. Using fixed effect panel data analysis, we found a significant positive relationship between ESO granting and firm value in the presence of concentrated ownership in Malaysia. This relationship is significant for the years next to the years of ESO granting occurrences while considering both market and accounting-based performance measurements. Additionally, based on firm-size, we also found a significant difference of ESO granting of Malaysian non-financial firms.
Keywords: agency problems; corporate governance; descriptive statistics; ESO granting; firm size; firm value; fixed effect; Malaysia; ownership structure; panel data analysis; return on assets; ROA; Tobin's q; executive stock options; executive remuneration. (search for similar items in EconPapers)
References: Add references at CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
Access to full text is restricted to subscribers.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ids:ijbexc:v:10:y:2016:i:4:p:433-448
Access Statistics for this article
More articles in International Journal of Business Excellence from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().