Does Equity-based Compensation Add Value? Evidence from China’s Emerging Market Economy
作者单位：School of AccountingShanghai University of International Business and Economics Kelley School of BusinessIndiana University
会议名称：《中国对外经济贸易会计学会2013年学术年会》
会议日期：2014年
学科分类：12[管理学] 02[经济学] 0202[经济学-应用经济学] 1201[管理学-管理科学与工程(可授管理学、工学学位)] 020204[经济学-金融学（含∶保险学）]
关 键 词：equity-based compensation China convergence of interest managerial power
摘 要：In 2006 the Chinese Securities Regulatory Commission permitted equity-based *** the three-day event window surrounding the regulatory announcement and subsequent firm announcements of equity-based compensation plans,stock values increase approximately 20%.Comparing stock and accounting performance to a matched sample of firms not adopting equitybased compensation,firm performance drops during the period between the announcement and plan implementation（consistent with managerial power）,but performance increases following plan implementation（consistent with convergence of interest）.Investors anticipate improved performance following the implementation of equity-based compensation;however,faster adoption processes may reduce the underperformance between the firm announcement and final implementation.