Purpose – The purpose of this paper is to illuminate issues surrounding executive compensation as it relates to current understandings of Islamic business law. Design/methodology/approach – The emerging bodies of literature in the fields of executive compensation and opinions of stock...

Purpose – Scholars have examined the importance of a firm's dividend policy through two competing paradigms: the signalling hypothesis and the free cash-flow hypothesis. It has been argued that our understanding of dividend policy is hindered by the lack of a model that integrates the two...

This study examines the effect of the first introduction of Greek stock options (Greek Telecommunication Organisation, Intracom, National Bank of Greece and Alpha Bank) on stock prices and volatility for the period 1999 to 2002. We examine the asymmetric information hypothesis using a standard...

In recent years, the use of stock options as an incentive compensation scheme has evolved to be one of the most debated topics in the finance literature as well as in the corporate world. The investigations into the option granting practices at a number of U.S. firms, which were accused of...

The incentive stock options (ISOs) are similar to the regular stock call options. However, when one considers various taxing laws regarding the ISO stocks, the ISOs have unique features differentiated from the regular stock call options. In general, no income from ISOs is realized, for tax...

This paper examines issues involving employee stock option plans as a part of employee compensation. In particular, employee stock options requiring a requisite service period are viewed as an option on options and hence, a compound option, as the employee’s future market wage rate is unknown....

This paper investigates the relationship between labor, shareholders, and CEOs to reflect the simultaneous rise in share repurchases after 1980, the increasingly exploitative outcomes for labor, and the rise of CEO compensation. The paper finds that although institutional investors may have...

The legal rule of corporate limited liability is not generally considered to have any fundamental economic significance. This is why the idea of reforming this rule can be raised in discussions concerning corporate accountability and this is why political or administrative difficulties rather...

Purpose – Prior research has documented that managers take opportunistic timing activities to influence the exercise prices of executive stock options (ESOs). This paper aims to add to the literature by investigating whether such behavior is mitigated by the exercise price regulation of China....

Purpose – This paper aims to examine whether the substitution of employee stock options (ESOs) for debt occurs for firms with different tax status classifications throughout the conditional distribution of interest expense before and after the implementation of Statement of Financial...