Equity incentives, disclosure quality, and stock liquidity risk

Karen H. Wruck (The Ohio State University), YiLin Wu (National Taiwan University)

We provide evidence that CEO equity incentives, especially stock options, influence stock liquidity risk via information disclosure quality. We document a negative association between CEO options and the quality of future managerial disclosure policy. Contributing to the literature on CEO risk-taking, we document a positive association between CEO options and future systematic stock liquidity risk. Controlling for endogeneity, we show that information disclosure quality is an important channel through which CEO options influence stock liquidity risk. Results are robust to various controls for endogeneity and to the use of numerous disclosure quality and stock liquidity risk measures

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Year of publication:	[2017]
Authors:	Wruck, Karen H. ; Wu, Yi Lin
Publisher:	[Columbus, Ohio] : The Ohio State University, Fisher College of Business, Charles A. Dice Center for Research in Financial Economics
Subject:	CEO Compensation \| CEO Incentives \| CEO Stock Options \| Liquidity Risk \| Liquidity Beta \| Liquidity Commonality \| Systematic Liquidity Risk \| Idiosyncratic Risk \| Risk-Taking Incentives \| Hedging \| Managerial Risk-Taking Incentives \| Managerial Hedging \| Führungskräfte \| Managers \| Aktienoption \| Stock option \| Managervergütung \| Executive compensation \| Leistungsentgelt \| Performance pay \| Risiko \| Risk \| Leistungsanreiz \| Performance incentive \| Liquidität \| Liquidity \| Risikomanagement \| Risk management \| Marktliquidität \| Market liquidity \| Risikopräferenz \| Risk attitude \| Portfolio-Management \| Portfolio selection \| Anreiz \| Incentives \| Prinzipal-Agent-Theorie \| Agency theory

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Extent:	1 Online-Ressource (circa 64 Seiten)
Series:	Fisher College of Business working paper series. - Columbus, Ohio : [Verlag nicht ermittelbar], ZDB-ID 2189279-9. - Vol. WP 2017, 02 Charles A. Dice Center Working Paper ; No. 2017-02 Fisher College of Business working paper series. - Columbus, Ohio : [Verlag nicht ermittelbar], ZDB-ID 2412551-9. - Vol. WP 2017-03-002
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Graue Literatur ; Non-commercial literature ; Arbeitspapier ; Working Paper
Language:	English
Other identifiers:	10.2139/ssrn.2905243 [DOI]
Classification:	d22 ; G12 - Asset Pricing ; G32 - Financing Policy; Capital and Ownership Structure ; G34 - Mergers; Acquisitions; Restructuring; Corporate Governance ; J33 - Compensation Packages; Payment Methods ; J41 - Contracts: Specific Human Capital, Matching Models, Efficiency Wage Models, and Internal Labor Markets ; O31 - Innovation and Invention: Processes and Incentives
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10011963233