Do Stock Option Incentives Help Reduce Corporate Violations?
The illegal behavior of listed companies seriously endangers the healthy and stable development of the capital market.As an important mechanism of modem corporate internal governance,whether stock option incentive can play a role in reducing corporate irregularities remains to be studied.Based on the data of listed companies in China from 2011 to 2021,this paper examines the impact of stock option incentives on corporate irregularities.It is found that stock option incentives help to reduce corporate irregularities.Reducing earnings management and improving the quality of internal control are the potential mechanisms for stock option incentives to reduce corporate violations.The results of heterogeneity analysis show that the impact of stock option incentives on illegal behavior is more significant in non-implemented employee stock ownership plans,low audit quality and non-state-owned enterprises.Further research shows that stock option incentive has more obvious governance effect on non-operating violations and general violations,and longer exercise period and higher degree of marketization contribute to the exertion of stock option incentive governance effect.The research of this paper not only enriches the literature on the incentive effect of stock options,but also has a certain reference significance for the governance of illegal behavior of listed companies.
NETL
NSTL
万方数据
