Is the Stock Option Effective to Maintain Key Management? Evidence from Indonesia Listed Companies

Feliana, Yie Ke and Lianggono, Fransisca (2020) Is the Stock Option Effective to Maintain Key Management? Evidence from Indonesia Listed Companies. In: 17th International Symposium on Management (INSYMA 2020), February 19-21, 2020, Ba Ria Vung Tau University.

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Abstract

Management stock option is a form of compensation which as a hypothetical function to maintain key management, that in the end, the goal is improving company performance. This study aims to prove the hypothesis using Indonesia listed companies' data over the 2012-2016 period. The turnover rate measures management retention. The effectiveness of management stock options is examined during the vesting and exercised period, while management stock options are measured in three ways, i.e., a dummy of the existence of stock option, the amount of stock option, and the number of shares that are offered as stock options. Management stock options are found limited in Indonesia listed companies. Overall, the results showed that granting management stock options are only useful in retaining the management only during the vesting period. This study contributes to the remuneration and nomination committee in regulating the optimal management stock options. Keywords: Management stock option, management retention, performance.

Item Type:	Conference or Workshop Item (Paper)
Uncontrolled Keywords:	Management stock option, management retention, performance
Subjects:	H Social Sciences > HF Commerce > HF5601 Accounting
Divisions:	Faculty of Business and Economic > Department of Accounting
Depositing User:	Yie Ke Feliana 3193
Date Deposited:	23 Apr 2021 02:38
Last Modified:	28 Jan 2022 08:43
URI:	http://repository.ubaya.ac.id/id/eprint/39385

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