Title

Equity-Based Compensation For Employees: Firm Performance And Determinants

Abstract

I examine the effect of employee equity-based compensation (EBC) on firm performance and the determinants of EBC. Using two samples, I find that firms have come to rely more heavily on EBC than in the past. For both samples, I document a significant, positive relation between Tobin's q and the percentage of employee compensation that is equity based. For accounting returns, I find a positive relation with the earlier sample. However, for the later sample I find that greater use of EBC leads to lower levels of future accounting returns. I also find that the determinants of the proportion of EBC are different between the two samples.

Publication Date

3-1-2004

Publication Title

Journal of Financial Research

Volume

27

Issue

1

Number of Pages

31-54

Document Type

Article

Personal Identifier

scopus

DOI Link

https://doi.org/10.1111/j.1475-6803.2004.00076.x

Socpus ID

1642342913 (Scopus)

Source API URL

https://api.elsevier.com/content/abstract/scopus_id/1642342913

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