Agency Costs and Equity Mispricing

被引：25

作者：

Pantzalis, Christos ^{[1
]}

Park, Jung Chul ^{[2
]}

机构：

[1] Univ S Florida, Coll Business, Dept Finance, Tampa, FL 33620 USA

[2] Auburn Univ, Harbert Coll Business, Dept Finance, Auburn, AL 36849 USA

来源：

ASIA-PACIFIC JOURNAL OF FINANCIAL STUDIES | 2014年 / 43卷 / 01期

关键词：

Agency costs; Equity-based compensation; Equity mispricing; STOCK OPTION EXERCISES; INITIAL PUBLIC OFFERINGS; FREE CASH FLOW; EXECUTIVE-COMPENSATION; INFORMATION ASYMMETRY; FIRM PERFORMANCE; INVESTMENT DECISIONS; EARNINGS MANAGEMENT; OWNERSHIP STRUCTURE; ANALYST COVERAGE;

D O I：

10.1111/ajfs.12041

中图分类号：

F8 [财政、金融];

学科分类号：

0202 ;

摘要：

We investigate a link between agency costs and equity mispricing. We employ comprehensive, multi-dimensional measures of agency costs and mispricing, and find that mispricing is significantly and positively related to agency costs. We also explore the effect of equity-based compensation on the impact of agency costs on mispricing. Our investigation extends previous studies that do not separately account for the options and restricted stock grants components of equity-based compensation. We show that stock options, originally intended to resolve conflicts of interest, exaggerate the problem and this phenomenon is pronounced especially when firms are overvalued. Overall, our results imply that compensation packages that are not structured optimally could lead to greater mispricing.

引用

页码：89 / 123

页数：35

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