Determinants of stock option use by Japanese companies

Research output: Contribution to journalArticle

18 Citations (Scopus)

Abstract

Japanese data show a negative relation between leverage and the probability of firms' use of stock options. Such a relation is more marked for firms affiliated with specific keiretsu or main banks. This evidence reflects the fact that Japanese companies are more reliant on debt financing and that the agency cost of debt is a central issue in corporate governance. Results show that the frequency of the firms' use of stock options is positively associated with firm size. Finally, independent firms, which reveal more concern about shareholder wealth, are more likely to use stock options.

Original languageEnglish
Pages (from-to)251-269
Number of pages19
JournalReview of Financial Economics
Volume15
Issue number3
DOIs
Publication statusPublished - Aug 18 2006

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Stock options
Firm size
Corporate governance
Shareholder wealth
Leverage
Keiretsu
Agency costs of debt
Debt financing
Main bank

All Science Journal Classification (ASJC) codes

  • Finance
  • Economics and Econometrics

Cite this

Determinants of stock option use by Japanese companies. / Uchida, Konari.

In: Review of Financial Economics, Vol. 15, No. 3, 18.08.2006, p. 251-269.

Research output: Contribution to journalArticle

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