The Influence of Outside Directors' Stock‐Option Compensation on Firms' R&amp;D

Deutsch, Yuval

doi:10.1111/j.1467-8683.2007.00611.x

Cited by 57 publications

(50 citation statements)

References 113 publications

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“…However, it also adversely impacts short-term performance owing to its high uncertainty and high cost [1,12]. Therefore, how much to spend on R&D is one of the most sophisticated investment decisions faced by firm managers [2,14]. In fact, to a certain extent, it represents a trade-off between short-term performance and long-term performance [14].…”

Section: Introductionmentioning

confidence: 98%

“…Therefore, how much to spend on R&D is one of the most sophisticated investment decisions faced by firm managers [2,14]. In fact, to a certain extent, it represents a trade-off between short-term performance and long-term performance [14]. Given the key role of R&D investment in firm development and its complexity in decision-making, scholars often investigate what factors affect corporate investment in R&D [2].…”

Section: Introductionmentioning

confidence: 99%

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Does director interlock impact corporate R&D investment?

Han

Bose

et al. 2015

Decision Support Systems

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Section: Introductionmentioning

confidence: 98%

Section: Introductionmentioning

confidence: 99%

Does director interlock impact corporate R&D investment?

Han

Bose

et al. 2015

Decision Support Systems

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“…It has been comprehensively explained in the literature that CEO compensation has a significant impact on the firm performance. A thorough review of the current literature reveals conflicting results regarding this relationship (Adjaoud et al, 2007;Bauer et al, 2009;Deutsch, 2007;Herrmann et al, 2010;Junarsin, 2011;Kubo & Saito 2008;Lee et al, 2008;Makri et al, 2006;Pissaris et al, 2010;Schiehll & Bellavance, 2009;& Yawson, 2006) found a positive relationship between CEO compensation and firm performance in the developed countries. In the developing countries, many researchers also found a positive association between CEO compensation and firm performance (Al Farooque et al, 2007;.…”

Section: The Ceo Compensation and Firm Performancementioning

confidence: 99%

The Effect of Board of Directors Characteristics, Audit Committee Characteristics and Executive Committee Characteristics on Firm Performance in Oman: An Empirical Study

Al-Matar¹,

Al‐Swidi²,

Fadzil³

2014

ASS

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This study is an attempt to achieve the main objective by examining the association between the board of director's characteristics, audit committee characteristics and the executive committee characteristics and the performance of the Oman companies. This study used many assumptions to test the relationship between independent variables and dependent variable as discussed in the section explaining the study method. The data comprised of 162 non-financial companies because financial and non-financial companies employ different methods and they have different structures. As this study attempts to bridge the gap in the existing literature by investigating the association between corporate governance mechanisms and firm performance in the emerging market of Oman, it focuses on adding new important variables of corporate governance mechanisms like board change, the role of secretary on the board, the legal counsel and the executive committee characteristics that improve firm performance.The findings indicated a significantly positive relationship between board size, board meeting, audit committee independence and executive committee independence, and the Tobin`s Q. On the other hand, board independence and legal counsel are significantly and negatively related to Tobin`s Q. Moreover, a positive but insignificant relationship is found between CEO tenure, CEO compensation, audit committee size, and the firm performance (Tobin`s Q). Furthermore, board change, the role of the secretary on the board, audit committee meeting, executive committee size and executive committee meeting are revealed to have a negative but insignificant association with firm performance (Tobin`s Q). Finally, this study provides recommendations for future research.

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“…Despite the promise of compensation as an alignment mechanism, however, research in this area has remained somewhat scarce. A portion of this research stream has examined the influence of director stock‐based pay on firm performance (e.g., Cordeiro, Veliyath, and Romal, ; Grossman and Hoskisson, ), while more recent research has narrowed its focus to how outside director pay facilitates firms' risk decisions (e.g., Deutsch, ; Deutsch et al ., , ).…”

Section: Introductionmentioning

confidence: 99%

The influence of relative values of outside director stock options on firm strategic risk from a multiagent perspective

Lim

McCann

2013

Strat. Mgmt. J.

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Prior work has examined the effects of absolute levels of outside director stock option grants on risk behavior without recognizing that relative stock option values could differentially affect risk taking. Drawing from the house money effect perspective, we extend this literature by examining how positive deviation from prior outside director option grants values influences firm strategic risk. Additionally we draw from the behavioral agency model and the power literature to develop a multiagent contingency framework suggesting the effect of positive director pay deviation depends on the incentives and power of CEOs reflected in CEO stock ownership and CEO duality, respectively. Our empirical results indicate positive pay deviation has a positive effect on firm risk taking while high ownership and duality independently and jointly weaken this base relationship. Copyright © 2013 John Wiley & Sons, Ltd.

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The Influence of Outside Directors' Stock‐Option Compensation on Firms' R&D

Cited by 57 publications

References 113 publications

Does director interlock impact corporate R&D investment?

Does director interlock impact corporate R&D investment?

The Effect of Board of Directors Characteristics, Audit Committee Characteristics and Executive Committee Characteristics on Firm Performance in Oman: An Empirical Study

The influence of relative values of outside director stock options on firm strategic risk from a multiagent perspective

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