Executive stock option, corporate governance and value of the firm: Facts and fiction of Malaysian non-financial listed companies

Ibrahimy, A.I. and Ahmad, R. (2012) Executive stock option, corporate governance and value of the firm: Facts and fiction of Malaysian non-financial listed companies. In: 2nd International Conference On Management (2nd ICM 2012) Proceeding, 11-12 June 2012, Langkawi, Kedah.

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Abstract

Ownership structure is important in determining a company’s objective, increasing shareholders’ wealth and discipline of managers. In other words, ownership structure and the separation of ownership and control is the heart of corporate governance area. This paper looks into Executive Stock Option (ESO) granting of Malaysian non-financial companies as a corporate governance mechanism designed to reduce agency problem, thereby increasing firm value. The period of study covers from 2002 until 2008 to test the effects of ESO granting on firm performance while considering both market and accounting based performance measurements. Both univariate and multivariate panel data fixed effect regression models revealed a significant positive relationship between ESO granted and value of the firm for the years next to the years of ESO granting occurrences.

Item Type: Conference or Workshop Item (Paper)
Additional Information: Agency problem, Executive stock option granting, Ownership structure, Panel data analysis, Return on assets, Tobin’s q
Subjects: H Social Sciences > HG Finance
Divisions: Faculty of Business and Accountancy > Dept of Finance and Banking
Depositing User: Mr. Mohd Samsul Ismail
Date Deposited: 23 Sep 2015 01:04
Last Modified: 23 Sep 2015 01:04
URI: http://eprints.um.edu.my/id/eprint/14123

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