Leverage and growth: Effect of stock options

被引：1

作者：

Francis, Bill ^{[1
]}

Hasan, Iftekhar ^{[1
,2
]}

Sharma, Zenu ^{[3
]}

机构：

[1] Rensselaer Polytech Inst, Lally Sch Management, Troy, NY 12180 USA

[2] Bank Finland, FI-00101 Helsinki, Finland

[3] Long Isl Univ, Greenvale, NY 11548 USA

来源：

JOURNAL OF ECONOMICS AND BUSINESS | 2011年 / 63卷 / 06期

关键词：

Leverage; Growth; Stock-based compensation;

D O I：

10.1016/j.jeconbus.2011.04.003

中图分类号：

F8 [财政、金融];

学科分类号：

0202 ;

摘要：

Previous literature documents a negative relationship between leverage and firm growth. This paper finds that once the incentives provided by stock options are accounted for, leverage does not affect firm growth. The paper also finds that the sensitivity of CEOs' wealth to stock price (i.e. option delta) instead of leverage has a negative relationship with growth. These findings suggest that incentive contracts that tie managers' wealth to firm value prevent managers from overinvesting. Thus in presence of options the role of debt as a disciplining mechanism has become less important. (C) 2011 Elsevier Inc. All rights reserved.

引用

页码：558 / 581

页数：24

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