Employee stock options and real earnings management through accretive share buyback in Malaysia
We examine the association between employee stock options and real earnings management through accretive buyback programs. Our study uses unbalanced panel logistic estimation model for a sample of 601 firms’ observations that involved in accretive share buyback over the period 2010-2015. The outcom...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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Akademia Baru
2017
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| Subjects: | |
| Online Access: | https://repo.uum.edu.my/id/eprint/25858/1/ARBMS%208%201%202017%2076%2084.pdf |
| _version_ | 1803629018714472448 |
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| author | Alquhaif, Abdulsalam Saad Abdul Latif, Rohaida Chandren, Sitraselvi |
| author_facet | Alquhaif, Abdulsalam Saad Abdul Latif, Rohaida Chandren, Sitraselvi |
| author_sort | Alquhaif, Abdulsalam Saad |
| collection | UUM |
| description | We examine the association between employee stock options and real earnings management through accretive buyback programs. Our study uses unbalanced panel logistic estimation model for a sample of 601 firms’ observations that involved in
accretive share buyback over the period 2010-2015. The outcomes reveal that stock options exercised by insiders (executives and employees) are associated with high likely to engage in accretive share buyback activities. The results also provide evidence that a large percentage of the independent directors serving the board constrain real earnings management by engaging in accretive share buybacks. Our study contributes to the debate on stock options, and their impact on accretive buyback programs to manage reported EPS. Our findings provide insight to investors and the policymakers that managers holding stock options have more incentive to manage EPS through accretive share buyback activities. Academic researchers could extend this study by separating among executive and employees’ stock options and between exercisable and non-exercisable stock options. |
| first_indexed | 2024-07-04T06:31:11Z |
| format | Article |
| id | uum-25858 |
| institution | Universiti Utara Malaysia |
| language | English |
| last_indexed | 2024-07-04T06:31:11Z |
| publishDate | 2017 |
| publisher | Akademia Baru |
| record_format | dspace |
| spelling | uum-258582019-04-04T07:03:26Z https://repo.uum.edu.my/id/eprint/25858/ Employee stock options and real earnings management through accretive share buyback in Malaysia Alquhaif, Abdulsalam Saad Abdul Latif, Rohaida Chandren, Sitraselvi HD28 Management. Industrial Management We examine the association between employee stock options and real earnings management through accretive buyback programs. Our study uses unbalanced panel logistic estimation model for a sample of 601 firms’ observations that involved in accretive share buyback over the period 2010-2015. The outcomes reveal that stock options exercised by insiders (executives and employees) are associated with high likely to engage in accretive share buyback activities. The results also provide evidence that a large percentage of the independent directors serving the board constrain real earnings management by engaging in accretive share buybacks. Our study contributes to the debate on stock options, and their impact on accretive buyback programs to manage reported EPS. Our findings provide insight to investors and the policymakers that managers holding stock options have more incentive to manage EPS through accretive share buyback activities. Academic researchers could extend this study by separating among executive and employees’ stock options and between exercisable and non-exercisable stock options. Akademia Baru 2017 Article PeerReviewed application/pdf en https://repo.uum.edu.my/id/eprint/25858/1/ARBMS%208%201%202017%2076%2084.pdf Alquhaif, Abdulsalam Saad and Abdul Latif, Rohaida and Chandren, Sitraselvi (2017) Employee stock options and real earnings management through accretive share buyback in Malaysia. Journal of Advanced Research in Business and Management Studies, 8 (1). pp. 76-84. ISSN 2462-1935 http://www.akademiabaru.com/doc/ARBMSV8_N1_P76_84.pdf |
| spellingShingle | HD28 Management. Industrial Management Alquhaif, Abdulsalam Saad Abdul Latif, Rohaida Chandren, Sitraselvi Employee stock options and real earnings management through accretive share buyback in Malaysia |
| title | Employee stock options and real earnings management
through accretive share buyback in Malaysia |
| title_full | Employee stock options and real earnings management
through accretive share buyback in Malaysia |
| title_fullStr | Employee stock options and real earnings management
through accretive share buyback in Malaysia |
| title_full_unstemmed | Employee stock options and real earnings management
through accretive share buyback in Malaysia |
| title_short | Employee stock options and real earnings management
through accretive share buyback in Malaysia |
| title_sort | employee stock options and real earnings management through accretive share buyback in malaysia |
| topic | HD28 Management. Industrial Management |
| url | https://repo.uum.edu.my/id/eprint/25858/1/ARBMS%208%201%202017%2076%2084.pdf |
| work_keys_str_mv | AT alquhaifabdulsalamsaad employeestockoptionsandrealearningsmanagementthroughaccretivesharebuybackinmalaysia AT abdullatifrohaida employeestockoptionsandrealearningsmanagementthroughaccretivesharebuybackinmalaysia AT chandrensitraselvi employeestockoptionsandrealearningsmanagementthroughaccretivesharebuybackinmalaysia |