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The two sides of CEO option grants at the IPO

Show simple item record Chahine S. Goergen M.
dc.contributor.editor 2011 2017-09-07T07:51:24Z 2017-09-07T07:51:24Z 2011
dc.identifier 10.1016/j.jcorpfin.2011.04.005
dc.identifier.issn 09291199
dc.description.abstract This paper examines the impact of CEO IPO option grants on IPO underpricing. Contrary to Lowry and Murphy (2007) who do not find a relationship between the two, this paper finds such a relationship when board independence, the power of the CEO and venture capitalists (VCs) are taken into account. The results are threefold. First, powerful CEOs are able to reap substantial gains from IPO options, to the detriment of the shareholders. Second, young, powerful VCs use IPO option grants to bribe the CEO to agree to an early IPO which will leave more of the existing shareholders' money on the table. Finally, IPO options only work as a value-enhancing incentive in the presence of strong boards. © 2011 Elsevier B.V.
dc.format.extent Pages: (1116-1131)
dc.language English
dc.publisher AMSTERDAM
dc.relation.ispartof Publication Name: Journal of Corporate Finance; Publication Year: 2011; Volume: 17; no. 4; Pages: (1116-1131);
dc.source Scopus
dc.title The two sides of CEO option grants at the IPO
dc.type Article
dc.contributor.affiliation Chahine, S., The Suliman Olayan School of Business, American University of Beirut, Bliss Street, P.O. Box: 11-0236, Beirut, Lebanon
dc.contributor.affiliation Goergen, M., Cardiff Business School and European Corporate Governance Institute, Aberconway Building, Colum Drive, Cardiff, CF10 3EU, United Kingdom
dc.contributor.authorAddress Chahine, S.; The Suliman Olayan School of Business, American University of Beirut, Bliss Street, P.O. Box: 11-0236, Beirut, Lebanon; email:
dc.contributor.authorCorporate University: American University of Beirut; Faculty: Suliman S. Olayan School of Business; Department: School of Business;
dc.contributor.authorDepartment School of Business
dc.contributor.authorFaculty Suliman S. Olayan School of Business
dc.contributor.authorInitials Chahine, S
dc.contributor.authorInitials Goergen, M
dc.contributor.authorReprintAddress Chahine, S (reprint author), Amer Univ Beirut, Suliman Olayan Sch Business, Bliss St,POB 11-0236, Beirut, Lebanon.
dc.contributor.authorUniversity American University of Beirut
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dc.description.citedCount 5
dc.description.citedTotWOSCount 2
dc.description.citedWOSCount 2
dc.format.extentCount 16
dc.identifier.scopusID 79960952110
dc.publisher.address PO BOX 211, 1000 AE AMSTERDAM, NETHERLANDS
dc.relation.ispartOfISOAbbr J. Corp. Financ.
dc.relation.ispartOfIssue 4
dc.relation.ispartofPubTitle Journal of Corporate Finance
dc.relation.ispartofPubTitleAbbr J. Corp. Financ.
dc.relation.ispartOfVolume 17
dc.source.ID WOS:000302841300020
dc.type.publication Journal
dc.subject.otherAuthKeyword Board independence
dc.subject.otherAuthKeyword CEO power
dc.subject.otherAuthKeyword Conflicts of interests
dc.subject.otherAuthKeyword Corporate governance
dc.subject.otherAuthKeyword Initial public offerings
dc.subject.otherAuthKeyword Stock options
dc.subject.otherAuthKeyword Underpricing
dc.subject.otherAuthKeyword Venture capital involvement
dc.subject.otherKeywordPlus INITIAL PUBLIC OFFERINGS
dc.subject.otherKeywordPlus EXECUTIVE-COMPENSATION
dc.subject.otherKeywordPlus CORPORATE GOVERNANCE
dc.subject.otherKeywordPlus FIRM PERFORMANCE
dc.subject.otherKeywordPlus STOCK-OPTIONS
dc.subject.otherKeywordPlus AGENCY COSTS
dc.subject.otherKeywordPlus OWNERSHIP
dc.subject.otherKeywordPlus MANAGEMENT
dc.subject.otherKeywordPlus DIRECTORS
dc.subject.otherKeywordPlus TURNOVER
dc.subject.otherWOS Business, Finance

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