Journal of Accounting and Economics Vol. 7 No. 1-3 1985
The impact of long-range managerial compensation plans on shareholder wealth
Abstract
This study examines the stock price reaction around the announcement of proposed changes in long-term managerial compensation packages. The evidence indicates that on average these plans are met with positive market reactions, i.e., shareholder wealth increases. Further, we are unable to differentiate the market reaction to various types of long-range compensation schemes. This result is consistent with the notion that firms with different characteristics will resolve their managerial compensation requirements differently. Thus no particular compensation package necessarily dominates all others.
- DOI
- 10.1016/0165-4101(85)90031-x
- Volume
- 7
- Issue
- 1-3
- Pages
- 115-129
- Language
- en
- Sources
- bibtex:phds-export.bib openalex crossref