CFOs versus CEOs: Equity incentives and crashes
Using a large sample of U.S. firms for the period 1993-2009, we provide evidence that the sensitivity of a chief financial officer's (CFO) option portfolio value to stock price is significantly and positively related to the firm's future stock price crash risk. In contrast, we find only we...
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Institutional Knowledge at Singapore Management University
2011
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| 在線閱讀: | https://ink.library.smu.edu.sg/soa_research/1706 https://ink.library.smu.edu.sg/context/soa_research/article/2733/viewcontent/CFOsversusCEOs_2011.pdf |
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sg-smu-ink.soa_research-27332019-12-16T08:48:20Z CFOs versus CEOs: Equity incentives and crashes KIM, Jeong-Bon LI, Yinghua ZHANG, Liandong Using a large sample of U.S. firms for the period 1993-2009, we provide evidence that the sensitivity of a chief financial officer's (CFO) option portfolio value to stock price is significantly and positively related to the firm's future stock price crash risk. In contrast, we find only weak evidence of the positive impact of chief executive officer option sensitivity on crash risk. Finally, we find that the link between CFO option sensitivity and crash risk is more pronounced for firms in non-competitive industries and those with a high level of financial leverage. 2011-09-01T07:00:00Z text application/pdf https://ink.library.smu.edu.sg/soa_research/1706 info:doi/10.1016/j.jfineco.2011.03.013 https://ink.library.smu.edu.sg/context/soa_research/article/2733/viewcontent/CFOsversusCEOs_2011.pdf http://creativecommons.org/licenses/by-nc-nd/4.0/ Research Collection School Of Accountancy eng Institutional Knowledge at Singapore Management University Equity incentives Crash risk Compensation Corporate governance CFO CEO Accounting Corporate Finance |
| institution |
Singapore Management University |
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SMU Libraries |
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Asia |
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Singapore Singapore |
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SMU Libraries |
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InK@SMU |
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English |
| topic |
Equity incentives Crash risk Compensation Corporate governance CFO CEO Accounting Corporate Finance |
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Equity incentives Crash risk Compensation Corporate governance CFO CEO Accounting Corporate Finance KIM, Jeong-Bon LI, Yinghua ZHANG, Liandong CFOs versus CEOs: Equity incentives and crashes |
| description |
Using a large sample of U.S. firms for the period 1993-2009, we provide evidence that the sensitivity of a chief financial officer's (CFO) option portfolio value to stock price is significantly and positively related to the firm's future stock price crash risk. In contrast, we find only weak evidence of the positive impact of chief executive officer option sensitivity on crash risk. Finally, we find that the link between CFO option sensitivity and crash risk is more pronounced for firms in non-competitive industries and those with a high level of financial leverage. |
| format |
text |
| author |
KIM, Jeong-Bon LI, Yinghua ZHANG, Liandong |
| author_facet |
KIM, Jeong-Bon LI, Yinghua ZHANG, Liandong |
| author_sort |
KIM, Jeong-Bon |
| title |
CFOs versus CEOs: Equity incentives and crashes |
| title_short |
CFOs versus CEOs: Equity incentives and crashes |
| title_full |
CFOs versus CEOs: Equity incentives and crashes |
| title_fullStr |
CFOs versus CEOs: Equity incentives and crashes |
| title_full_unstemmed |
CFOs versus CEOs: Equity incentives and crashes |
| title_sort |
cfos versus ceos: equity incentives and crashes |
| publisher |
Institutional Knowledge at Singapore Management University |
| publishDate |
2011 |
| url |
https://ink.library.smu.edu.sg/soa_research/1706 https://ink.library.smu.edu.sg/context/soa_research/article/2733/viewcontent/CFOsversusCEOs_2011.pdf |
| _version_ |
1770574122002153472 |