عنوان
پدید آورنده
موضوع
رده
کتابخانه
محل استقرار
NATIONAL BIBLIOGRAPHY NUMBER
Number
TLpq2468228556
LANGUAGE OF THE ITEM
.Language of Text, Soundtrack etc
انگلیسی
TITLE AND STATEMENT OF RESPONSIBILITY
Title Proper
Passive Demand but Active Pay:
General Material Designation
[Thesis]
First Statement of Responsibility
Azim, Muhammad
Title Proper by Another Author
The Effect of ETF Flows on CEO Stock Option Compensation
Subsequent Statement of Responsibility
Bova, Francesco
.PUBLICATION, DISTRIBUTION, ETC
Name of Publisher, Distributor, etc.
University of Toronto (Canada)
Date of Publication, Distribution, etc.
2020
PHYSICAL DESCRIPTION
Specific Material Designation and Extent of Item
106
DISSERTATION (THESIS) NOTE
Dissertation or thesis details and type of degree
Ph.D.
Body granting the degree
University of Toronto (Canada)
Text preceding or following the note
2020
SUMMARY OR ABSTRACT
Text of Note
The rising prominence of exchange-traded funds (ETFs) over the past decade has resulted in a non-fundamentals driven demand for stocks held in ETF baskets. Prior research on ETFs finds both ETF-related stock price mis-valuation and ETF-related increases in the co-movement of stock prices. Separately, prior research on CEO compensation suggests that firms should use less stock option compensation when stock prices are less informative about firm performance as it becomes more difficult to mitigate the moral hazard problem, but more stock option compensation when there is increased co-movement, as stock options become a more effective tool for retention. Motivated by the fact that stock prices play a key role in CEO compensation decisions, this study tests the effect of ETF flows on CEO stock option compensation. I find that stock option compensation is increasing with ETF flows. Further, I find that the positive relation between stock option compensation and ETF flows is prominent in cross-sections where there is an ex ante motivation to compensate executives with options for retention purposes. Additionally, I do not find a positive relationship between risk-taking or firm performance with ETF flows, but do find a decrease in CEO turnover with increased ETF flows. The combined results suggest that: 1.) ETF flows may have affected firm incentives to compensate managers with stock options for retention purposes, and 2.) incentive alignment does not appear to be a prominent factor in awarding CEO stock options.
TOPICAL NAME USED AS SUBJECT
Accounting
Finance
Management
PERSONAL NAME - PRIMARY RESPONSIBILITY
Azim, Muhammad
Bova, Francesco
ELECTRONIC LOCATION AND ACCESS
Electronic name
مطالعه متن کتاب p
[Thesis]
276903
a
Y
