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Journal of Accounting and Economics Vol. 34 No. 1-3 2003

Stock-based pay in new economy firms

Kevin J. Murphy

University of Southern California

Abstract

Ittner, Lambert, and Larcker (J. Accounting Economics (2003) this issue) present compelling evidence that new economy firms rely more on stock-based compensation than do old economy firms, based on 1998 and 1999 data from a proprietary sample of companies. I complement the ILL results by analyzing data over a longer time period (1992–2001) and, more importantly, document the effect of the 2000 market crash on stock-based pay in new economy firms. Finally, I offer evidence supporting the conjecture that differences in pay practices between new and old economy firms reflect accounting considerations, perceived costs, and competitive inertia.

DOI
10.1016/s0165-4101(02)00090-3
Volume
34
Issue
1-3
Pages
129-147
Language
en
Sources
bibtex:phds-export.bib openalex crossref

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