which of the following statements about managerial ownership of stock options and corporate governance is true?
which of the following statements about managerial ownership of stock options and corporate governance is true?
Homework Answers
1) stock options increase in value when stock return volatility increases hence ownership of stock options could incentive the manager to increase firm risk.
2) stock options can be too sensitive to changes in stock price; this could increase the incentive for the manager to engage in fraud simply to try and boost the stock price in the short term.
3) stock options are arguably better tool because they are more sensitive to changes in stock price; hence giving the manager a smaller number of dollar-worth of stock options have the same effect as a gift of a larger dollar amount of shares.
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which of the following statements about managerial ownership of stock options and corporate governance is true?
about amazon Discuss the corporate governance (internal) mechanisms of the firm: Ownership concentration Board of directors Compensation
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