Is the Stock Option Effective to Maintain Key Management? Evidence from Indonesia Listed Companies
Y.K. Feliana, F. Lianggono
Available Online 31 January 2020.
- https://doi.org/10.2991/aebmr.k.200127.020How to use a DOI?
- Management stock option, management retention, performance
- Management stock option is a form of compensation which has 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.
- Open Access
- This is an open access article distributed under the CC BY-NC license.
Cite this article
TY - CONF AU - Y.K. Feliana AU - F. Lianggono PY - 2020 DA - 2020/01/31 TI - Is the Stock Option Effective to Maintain Key Management? Evidence from Indonesia Listed Companies BT - Proceedings of the 17 th International Symposium on Management (INSYMA 2020) PB - Atlantis Press SP - 98 EP - 103 SN - 2352-5428 UR - https://doi.org/10.2991/aebmr.k.200127.020 DO - https://doi.org/10.2991/aebmr.k.200127.020 ID - Feliana2020 ER -