The interactions between R&D investment decisions and compensation policy

被引：121
|
作者：
Ryan, HE [1 ]
Wiggins, RA
机构：
[1] Louisiana State Univ, Baton Rouge, LA 70803 USA
[2] Bentley Coll, Waltham, MA 02154 USA
来源：
FINANCIAL MANAGEMENT | 2002年 / 31卷 / 01期
关键词：
D O I：
10.2307/3666319
中图分类号：
F8 [财政、金融];
学科分类号：
0202 ;
摘要：
We use a system of equations to investigate the endogenous relation between R&D investment and CEO compensation. Growth opportunity is positively related to the use of stock options. Stock options positively affect R&D while restricted stock has a negative influence. These results suggest that CEO compensation should balance incentive alignment and efficient risk sharing with risk-averse managers. Stock options are also found to be negatively related to leverage, but positively related to convertible debt. Additionally, this analysis suggests that institutional ownership directly influences R&D investment by providing managerial oversight and indirectly by influencing the compensation policy.
引用
收藏
页码：5 / 29
页数：25
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