Share Repurchasing and the Policies of Stock-Options
Journal Title: International Journal of Academic Research in Accounting, Finance and Management Sciences - Year 2014, Vol 4, Issue 1
Abstract
The objective of this paper is to examine the relation between share repurchases and stock options. In fact, certain studies demonstrate that the development of stock option plans since the beginning of the 1990s is also considered one explanation for the increase in equity programs for repurchasing shares. We have tested the validity of our hypothesis on a sample of 77 French firms listed during the 2003-2008 period. The results demonstrate a positive link between the performance of near future exercise of employee stock options and share repurchases. The desire to avoid the dilution associated with the performance of stock options can thus be one of the motives for making share repurchases. The results subsequently demonstrate that directors holding a substantial number of stock options encourage companies to make share repurchases. On the other hand, we detected a negative relationship between the existence of managerial stock options and the augmentation of dividends.
Authors and Affiliations
Rim El Houcine, Adel Boubaker
Keywords
Related Articles
- EP ID EP104705
- DOI 10.6007/IJARAFMS/v4-i1/570
- Views 96
- Downloads 0
Short-Run and Long-Run Effects of Monetary Policy on GDP in Iran
An Examination the Factors Influence on Unethical Behaviour among Jordanian external auditors: Job Satisfaction as a mediator
Analysis of the Evolution of Financial Indicators for the Period 2004-2014 TRANSGAZ SA
Effect of Customer Relationship Management (CRM) on Performance of Small-Medium Sized Enterprises (SMEs) Using Structural Equations Model (SEM)
In today world, the necessity of continuing activities and maintaining the competitive advantage is attention to customers that due to their direct relationship with organization actions are valuable source for opportuni...
Working Capital Determinants for the UK Pharmaceutical Companies Listed on FTSE 350 Index
The study is conducted to investigate working capital determinants for the UK Pharmaceutical companies that are the constituents of FTSE 350 index. Secondary data is collected through annual reports and DataStream databa...