Date of Award
2015
Document Type
Dissertation
Publication Status
Version of Record
Submission Date
October 2026
Thesis/Dissertation Advisor [Chair]
Kohlbeck, Mark
Abstract
I investigate the effect of shareholder rights and information asymmetry on option-related repurchase activity. Prior research shows that the dilution effect of the exercise of the employee stock options on earnings per share (EPS) decreases the value of stock options. Thus, managers tend to use stock repurchases rather than dividends to return cash to shareholders (the dividend substitution effect). I document that the executive stock option incentives to repurchase stock as a substitute for dividends are stronger when firms have weak shareholder rights and the level of information asymmetry positively influences managerial stock option incentives to repurchase stock. Furthermore, prior research indicates that information asymmetry is positively associated with stock repurchases. I also provide evidence indicating that the relationship between information asymmetry and stock repurchases is stronger when firms have weaker shareholder rights.
Extent
101 p.
Recommended Citation
Golden, Nan, "The effect of shareholder rights and information asymmetry on option-related repurchase activity" (2015). Electronic Theses and Dissertations 2010 - 2019. 1328.
https://digitalcommons.fau.edu/etd_general_6/1328
Identifier
FA00004373
Comments
Includes bibliography.|Dissertation (Ph.D.)--Florida Atlantic University, 2015.|FAU Electronic Theses and Dissertations Collection|Includes bibliography.