Convexity, magnification, and translation: The effect of managerial option-based compensation on corporate cash holdings
| dc.contributor.author | Belghitar, Yacine | - |
| dc.contributor.author | Clark, Ephraim | - |
| dc.date.accessioned | 2014-07-11T04:00:55Z | |
| dc.date.available | 2014-07-11T04:00:55Z | |
| dc.date.issued | 2014-06-11T00:00:00Z | - |
| dc.description.abstract | Using the distinctions among the convexity, magnification, and translation effects, we identify the pertinent parameters and examine empirically the relation between cash holdings and option-based managerial compensation. We show that changes in delta reduce the effects of magnification and convexity on managerial risk aversion. We also provide evidence that there is a negative relation between the option-based incentives delta and vega and cash holdings. These results are robust when incentives are extended to include all executive board members and when the sample is broken down according to different risk characteristics. | en_UK |
| dc.identifier.citation | Yacine Belghitar and Ephraim Clark, Convexity, magnification, and translation: the effect of managerial option-based compensation on corporate cash holdings, Journal of Financial Research, Volume 37, Issue 2, Summer 2014, pp. 191-210 | |
| dc.identifier.cris | 1809025 | |
| dc.identifier.issn | 0270-2592 | - |
| dc.identifier.uri | http://dx.doi.org/10.1111/jfir.12034 | - |
| dc.identifier.uri | http://dspace.lib.cranfield.ac.uk/handle/1826/8612 | |
| dc.publisher | Blackwell Publishing Ltd | en_UK |
| dc.rights | Attribution-NonCommercial-NoDerivatives 4.0 International | |
| dc.rights.uri | http://creativecommons.org/licenses/by-nc-nd/4.0/ | |
| dc.title | Convexity, magnification, and translation: The effect of managerial option-based compensation on corporate cash holdings | en_UK |
| dc.type | Article | - |