L71 PhD Thesis Mohammed_Sualihu 26329204_Redacted.pdf (1.08 MB)
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The Role of Equity Compensation in Reducing Inefficient Investment in Labour

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thesis
posted on 13.03.2019, 00:40 by MOHAMMED AMINU SUALIHU
This thesis examines whether equity compensation incentivises executives to make efficient labour investment decisions. Specifically, it examines whether the components of equity compensation — stock options and restricted stock — affect over- and under-investment in labour. Based on a sample of 12118 firm-year observations from 1992 to 2014, it is found that stock options exacerbate over-investment and mitigate under-investment in labour. In contrast, restricted stock is found to mitigate both over- and under-investment in labour. Overall, the findings demonstrate that stock options and restricted stock matter in executives’ labour investment decisions.

History

Campus location

Australia

Principal supervisor

Michaela Rankin

Additional supervisor 1

Janto Haman

Year of Award

2018

Department, School or Centre

Accounting

Course

Doctor of Philosophy

Degree Type

DOCTORATE

Faculty

Faculty of Business and Economics