The Value and Incentives of Option-based Compensation in Danish Listed Companies

The Value and Incentives of Option-based Compensation in Danish Listed Companies

Over the last decade the Danish corporate environment has experienced a significant increase in the use of option-based compensation (OBC). This and many other facts are documented in the present paper which provides the first insights into the characteristics of the option and warrant contracts issued by the complete sample of Danish companies listed on the Copenhagen Stock Exchange. A newly c...

Incentives of stock option based compensation

We introduce explicitly the effort as a choice variable in a continuous time utility maximisation framework of an executive who is partly compensated with stock options. We solve the model in the case where the executive is not allowed to trade in the company’s stock but is able to achieve a partial insurance through trading in a correlated market portfolio. We define the executive’s value of t...

Value of Listed Companies; Abnormal Earnings and Innovativeness

This a conceptual paper concerning the relation between innovativeness and monopoly rent/abnormal earnings. It discusses how these concepts can be measured and proposes that abnormal earnings are the result differentiation, by innovativeness (monopoly rent) or branding, by underor overvalued assets, or by imperfect market information (value irrelevance). Specifically, innovativeness as a driver...

A Comparison Between Growth And Value Stocks Of Listed Companies In Tehran Stock Exchange

A Comparison Between Growth And Value Stocks Of Listed Companies In Tehran Stock Exchange