Browse

Determinants of Stock-based Incentives: Evidence from Korean Firm-level Data

Cited 0 time in Web of Science Cited 0 time in Scopus
Issue Date
2022-02
Publisher
경제연구소
Citation
Seoul Journal of Economics, Vol.35 No.1, pp.59-87
Abstract
Firms often use stock-based incentives (SBIs) to attract and motivate talented employees. Thus, the question of how and on what basis to determine SBIs is an important issue for a firm. In this paper, we study determinants of SBIs based on data of Korean-listed firms in 2002-2018. As a measure of SBIs, we use Portfolio Delta, the sum of Stock Delta, which represents incentives from stockholdings, and Stock Option Delta, which represents incentives from unexercised option awards. Our results show that provision of SBIs depends on both firm and individual characteristics. In particular, firm characteristics such as size, risk, and growth prospects of a firm are major determinants of overall SBI provisions. We have also found that, for business executives, individual characteristics such as careers and tenures are important determinants of SBIs. In particular, for top executives, SBIs are employed as substitutes for promotion-based incentives, whereas for newly appointed executives with relatively longer tenures, SBIs are provided as common and general incentives. These findings are consistent with results in the existing literature.
ISSN
1225-0279
URI
https://hdl.handle.net/10371/179555
Files in This Item:
There are no files associated with this item.
Appears in Collections:
College of Social Sciences (사회과학대학)Dept. of Economics (경제학부)Journal Papers (저널논문_경제학부)
College of Social Sciences (사회과학대학)Dept. of Economics (경제학부)Journal Papers (저널논문_경제학부)
  • mendeley

Items in S-Space are protected by copyright, with all rights reserved, unless otherwise indicated.

Browse