This study employs the panel threshold model to reexamine the non-monotonic relationship between CEO stock-based compensation and firm earnings across various firm-size conditions. The feasibility of the model is tested using data for US non-financial firms from 1993 to 2005. Our empirical...

This study examines the dynamics of the interrelation between option and stock markets using the Markov-switching vector error correction model. Specifically, we calculate the implied stock prices from the Black-Scholes 6 model and establish a statistic framework in which the parameter of the...