Do financial constraints affect the CEO stock options remuneration? Evidence from a panel threshold model

IF 3.8 Q2 BUSINESS

EuroMed Journal of Business Pub Date : 2023-08-09 DOI:10.1108/emjb-10-2022-0193

Sedki Zaiane, Halim Dabbou, M. Gallali

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引用次数: 1

Abstract

PurposeThe purpose of this study is to examine the nonlinear relationship between financial constraints and the chief executive officer (CEO) stock options compensation and to analyze whether the impact of financial constraints on the CEO stock options compensation changes at certain level of financial constraints or not.Design/methodology/approachThis study is based on a sample of 90 French firms for the period extending from 2008 to 2019. To deal with the non-linearity, the authors use a panel threshold method.FindingsUsing different measures of financial constraints [KZ index (Baker et al., 2003), SA index (Hadlock and Pierce, 2010) and FCP index (Schauer et al., 2019)], the results reveal that the impact of the financial constraints (SA index and FCP index) is positive below the threshold value and it becomes negative above.Research limitations/implicationsThe non-linearity between financial constraints and CEO stock options shows that the level of financial constraints can be a major determinant of the CEO compensation structure. More specifically, this study sheds light on the key role played by the level of financial constraints and how this latter influence management decisions.Originality/valueThis paper is the first to the best of the authors' knowledge to examine the nonlinear relationship between financial constraints and the CEO stock options compensation using a panel threshold model.

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财务约束是否会影响CEO的股票期权薪酬？来自面板阈值模型的证据

目的研究财务约束与首席执行官股票期权薪酬之间的非线性关系，分析财务约束对CEO股票期权薪酬的影响是否在一定程度的财务约束下发生变化。设计/方法论/方法本研究基于2008年至2019年期间90家法国公司的样本。为了处理非线性，作者使用了面板阈值法。结果使用不同的财务约束测度[KZ指数（Baker et al.，2003）、SA指数（Hadlock and Pierce，2010）和FCP指数（Schauer et al.，2019）]，结果表明，财务约束的影响（SA指数和FCP指标）在阈值以下为正，在阈值以上为负。研究局限性/含义财务约束与CEO股票期权之间的非线性表明，财务约束水平可能是CEO薪酬结构的主要决定因素。更具体地说，这项研究揭示了财务约束水平所起的关键作用，以及后者如何影响管理决策。独创性/价值本文首次使用面板阈值模型研究了财务约束与CEO股票期权薪酬之间的非线性关系。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

EuroMed Journal of Business BUSINESS-

CiteScore

9.80

自引率

19.20%

发文量

期刊介绍： The EuroMed Journal of Business (EMJB) is the premier publication facilitating dialogue among researchers from Europe and the Mediterranean. It plays a vital role in generating and disseminating knowledge about various business environments and trends in this region. By offering an up-to-date overview of emerging business practices in specific countries, EMJB serves as a valuable resource for its readers. As the official journal of the EuroMed Academy of Business, EMJB is committed to reflecting the economic growth seen in the European-Mediterranean region. It aims to be a focused and targeted business journal, highlighting environmental opportunities, threats, and marketplace developments in the area. Through its efforts, EMJB promotes collaboration and open dialogue among diverse research cultures and practices. EMJB serves as a platform for debating and disseminating research findings, new research areas and techniques, conceptual developments, and practical applications across various business segments. It seeks to provide a forum for discussing new ideas in business, including theory, practice, and the issues that arise within the field.