|
Archive@NYU >
Stern School of Business >
Finance Working Papers >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/2451/27099
|
| Title: | Good Timing: CEO Stock Option Awards and Company News Announcements |
| Authors: | David, Yermack |
| Issue Date: | Jun-1996 |
| Series/Report no.: | FIN-96-041 |
| Abstract: | This paper analyzes the timing of CEO stock option awards, as a method
of investigating corporate managers’ influence over the terms of
their own compensation. In a sample of 620 stock option awards to CEOs
of Fortune 500 companies between 1992 and 1994, I find that the timing
of awards coincides with favorable movements in company stock prices.
Patterns of companies’ quarterly earnings announcements are
consistent with an interpretation that CEOs received stock option awards
shortly before favorable corporate news. I evaluate and reject several
alternative explanations of the results, including insider trading and
the manipulation of news announcement dates. |
| URI: | http://hdl.handle.net/2451/27099 |
| Appears in Collections: | Finance Working Papers
|
All items in Faculty Digital Archive are protected by copyright, with all rights reserved.
|
