Ownership structure and operating performance changes surrounding stock option adoptions: Evidence from Japan

Konari Uchida, Mamoru Matsumoto

Research output: Contribution to journalArticle

3 Citations (Scopus)

Abstract

Stock option adoptions by IPO firms account for about one-third of Japanese stock option adoptions during 1997-2000. Non-IPO firms that adopt stock options tend to decrease financial institutions' ownership levels less than the average whereas reduce other corporations' ownership levels more than the average. The result suggests firms that care more about shareholder wealth decrease cross-shareholdings as well as issue stock options. However, such firms need to keep shareholdings by financial institutions to prevent increases in agency costs of debt. Finally, we do not find a significant change in firms' operating performance surrounding stock option adoptions.

Original languageEnglish
Pages (from-to)10-23
Number of pages14
JournalCorporate Ownership and Control
Volume4
Issue number2 A
Publication statusPublished - Dec 1 2006
Externally publishedYes

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Operating performance
Ownership structure
Japan
Stock options
Performance change
Ownership
Financial institutions
Cross-shareholding
Shareholding
Shareholder wealth
Agency costs of debt

All Science Journal Classification (ASJC) codes

  • Business, Management and Accounting(all)

Cite this

Ownership structure and operating performance changes surrounding stock option adoptions : Evidence from Japan. / Uchida, Konari; Matsumoto, Mamoru.

In: Corporate Ownership and Control, Vol. 4, No. 2 A, 01.12.2006, p. 10-23.

Research output: Contribution to journalArticle

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