英文摘要 |
Stock options are given to employees through granted rights to buy stocks at a certain exercise price when the vesting conditions are completed. Restricted stock rewards, conversely, are granted stocks awarded to employees with limited rights in which they can acquire full stock rights after the vesting conditions are completed. This study uses the concepts of systematic risk and idiosyncratic risk to measure the risk that a firm encounters based on data of Taiwanese-listed companies from 2011 to 2018 and investigates the effects of matching these two equity-based compensation plans and said risk on firm performance and earnings management. Our empirical results show that a company's performance is better if the idiosyncratic risk that firm faces is higher and there is a larger amount of stock options compared to the amount of restricted stock rewards. In addition, the level of earnings management is not greater when the firm's systematic risk or idiosyncratic risk is higher and when the ratio of the amount of stock option to the amount of restricted stock is higher. |