Executive Stock Option Contract Increases Firm Value and Performance: A Case Study on Starbucks Company

Executive Stock Option Contract Increases Firm Value and Performance: A Case Study on Starbucks Company

afzal ahmad

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Executive Stock Option Contract Increases Firm Value and Performance: A Case Study on Starbucks Company

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Abstract

A diversified stock option plan design plays a crucial role in the effectiveness of option contracts management and elimination of the free-rider problem. The aim of this study is to examine how a company can be used stock options in risk management and solving the agency problem rewarding employees and managers. The stock options plans offered by Starbucks engage all employees and executives into the ownership providing appropriate motivation and incentive and solving the agency problem. However, the study found that, this could also trigger more risk taking on the part of the top managers.

References

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Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

Data Availability

Not applicable for this article.

How to Cite This Article

afzal ahmad. 2015. \u201cExecutive Stock Option Contract Increases Firm Value and Performance: A Case Study on Starbucks Company\u201d. Global Journal of Management and Business Research - C: Finance GJMBR-C Volume 15 (GJMBR Volume 15 Issue C8): .

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GJMBR Volume 15 Issue C8
Pg. 9- 12

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Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

Keywords

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Classification

GJMBR-C Classification: JEL Code: H54

Submission ReceivedFebruary 8, 2015
Peer Review Double Blind
Handling Editor
Accepted March 1, 2015
Published March 15, 2015

Version of record

v1.2

Issue date

September 14, 2015

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Article Matrices

Total Score: 101

Country: Bangladesh

Subject: Global Journal of Management and Business Research - C: Finance

Authors: Afzal Ahmad (PhD/Dr. count: 0)

View Count (all-time): 136

Total Views (Real + Logic): 4001

Total Downloads (simulated): 2106

Publish Date: 2015 09, Mon

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Total Views: 4001

Total Downloads: 2106

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