Rank-and-File Employee Stock Options and Workplace Safety

References

• Aboody D, Levi S, Weiss D (2018) Managerial incentives, options, and cost-structure choices. Rev. Accounting Stud. 23(2):422–451.Crossref, Google Scholar
• Agca S, Babich V, Birge JR, Wu J (2022) Credit shock propagation along supply chains: Evidence from the CDS market. Management Sci. 68(9):6506–6538.Link, Google Scholar
• Aldatmaz S, Ouimet P, Van-Wesep ED (2018) The option to quit: The effect of employee stock options on turnover. J. Financial Econom. 127(1):136–151.Crossref, Google Scholar
• Almeida H, Kim C, Kim HB (2015) Internal capital markets in business groups: Evidence from the Asian Financial Crisis. J. Finance 70(6):2539–2586.Google Scholar
• Amin MR, Kim I, Lee S (2021) Local religiosity, workplace safety, and firm value. J. Corporate Finance 70:102093.Crossref, Google Scholar
• Armstrong C, Larcker D, Ormazabal G, Taylor D (2013) The relation between equity incentives and misreporting: The role of risk-taking incentives. J. Financial Econom. 109(2):327–350.Crossref, Google Scholar
• Babenko I, Du F, Tserlukevich Y (2021) Will I get paid? Employee stock options and mergers and acquisitions. J. Financial Quant. Anal. 56(1):29–64.Crossref, Google Scholar
• Babenko I, Lemmon M, Tserlukevich Y (2011) Employee stock options and investment. J. Finance 66(3):981–1009.Crossref, Google Scholar
• Baker GP, Jensen MC, Murphy KJ (1988) Compensation and incentives: Practice vs. theory. J. Finance 43(3):593–616.Crossref, Google Scholar
• Bakke TE, Mahmudi H, Fernando CS, Salas JM (2016) The causal effect of option pay on corporate risk management. J. Financial Econom. 120(3):623–643.Crossref, Google Scholar
• Baltagi B (2001) Econometric Analysis of Panel Data, 2nd ed. (John Wiley and Sons, Chichester, UK).Google Scholar
• Balliet D, Mulder LB, Van Lange PA (2011) Reward, punishment, and cooperation: A meta-analysis. Psych. Bull. 137(4):594.Crossref, Google Scholar
• Bens DA, Nagar V, Skinner DJ, Wong MF (2003) Employee stock options, EPS dilution, and stock repurchases. J. Accounting Econom. 36(1–3):51–90.Crossref, Google Scholar
• Bergman NK, Jenter D (2007) Employee sentiment and stock option compensation. J. Financial Econom. 84(3):67–712.Crossref, Google Scholar
• Biggerstaff L, Blank B, Goldie B (2019) Do incentives work? Option-based compensation and corporate innovation. J. Corporate Finance 58:415–430.Crossref, Google Scholar
• Blasi J, Kruse D, Park R (2010) Prevalence, characteristics, and employee views of financial participation in enterprises. Kruse D, Freeman R, Blasi J, eds. Shared Capitalism at Work (University of Chicago Press, Chicago), 41–75.Google Scholar
• Blasi J, Kruse D, Sesil J, Kroumova M (2000) Broad-based stock options and company performance: What the research tells us. J. Employee Ownership Law Finance 12(3):69–102.Google Scholar
• Boone JP, Khurana IK, Raman KK (2013) Religiosity and tax avoidance. J. Amer. Tax. Assoc. 35(1):53–84.Crossref, Google Scholar
• Bradley D, Mao CX, Zhang C (2022) Does analyst coverage affect workplace safety? Management Sci. 68(5):3464–3487.Link, Google Scholar
• Brickley JA, Dark FH (1987) The choice of organizational form: The case of franchising. J. Financial Econom. 18(2):401–420.Crossref, Google Scholar
• Bun MJ, Harrison TD (2019) OLS and IV estimation of regression models including endogenous interaction terms. Econometric Rev. 38(7):814–827.Crossref, Google Scholar
• Burke MJ, Salvador RO, Smith-Crowe K, Chan-Serafin S, Smith A, Sonesh S (2011) The dread factor: How hazards and safety training influence learning and performance. J. Appl. Psych. 96:46–70.Crossref, Google Scholar
• Call AC, Kedia S, Rajgopal S (2016) Rank-and-file employees and the discovery of misreporting: The role of stock options. J. Accounting Econom. 62(2–3):277–300.Crossref, Google Scholar
• Callen JL, Fang X (2015) Religion and stock price crash risk. J. Financial Quant. Anal. 50(1–2):169–195.Crossref, Google Scholar
• Campello M, Graham JR, Harvey CR (2010) The real effects of financial constraints: Evidence from a financial crisis. J. Financial Econom. 97(3):470–487.Crossref, Google Scholar
• Canil J, Karpavičius S (2018) Are employee stock option proceeds a source of finance for investment? J. Corporate Finance 50:468–483.Crossref, Google Scholar
• Canil J, Karpavičius S (2021) The relation between non-executive employee stock options and corporate innovation: Evidence from FAS 123R. Preprint, submitted August 24, https://dx.doi.org/10.2139/ssrn.3909511.Google Scholar
• Cao S, Wang Z, Yeung P (2022) Skin in the game: Operating growth, firm performance, and future stock returns. J. Financial Quant. Anal. 57(7):2559–2590.Crossref, Google Scholar
• Carline NF, Pryshchepa O, Wang B (2023) CEO Compensation incentives and playing it safe: Evidence from FAS 123R. J. Financial Quant. Anal. 58(7):2993–3026.Crossref, Google Scholar
• Caskey J, Ozel NB (2017) Earnings expectations and employee safety. J. Accounting Econom. 63(1):121–141.Crossref, Google Scholar
• Chang W, Dambra M, Schonberger B, Suk I (2023) Does sensationalism affect executive compensation? Evidence from pay ratio disclosure reform. J. Accounting Res. 51(1):187–242.Crossref, Google Scholar
• Chang X, Fu K, Low A, Zhang W (2015) Non-executive employee stock options and corporate innovation. J. Financial Econom. 115(1):168–188.Crossref, Google Scholar
• Chan-Serafin S, Brief AP, George JM (2013) Perspective—How does religion matter and why? Religion and the organizational sciences. Organ. Sci. 24(5):1585–1600.Link, Google Scholar
• Charles KK, Johnson MS, Stephens M Jr, Lee DQ (2022) Demand conditions and worker safety: Evidence from price shocks in mining. J. Labor Econom. 40(1):47–94.Crossref, Google Scholar
• Chen J, King THD, Wen MM (2020) Non-executive ownership and private loan pricing. J. Corporate Finance 64:101638.Crossref, Google Scholar
• Chen Y, Hasan I, Saffar W, Zolotoy L (2021) Executive equity risk-taking incentives and firms’ choice of debt structure. J. Bank. Finance 133:106274.Crossref, Google Scholar
• Christensen HB, Floyd E, Liu L, Maffett M (2017) The real effects of mandated information on social responsibility in financial reports: Evidence from mine-safety records. J. Accounting Econom. 64(2):284–304.Crossref, Google Scholar
• Christian MS, Bradley JC, Wallace JC, Burke MJ (2009) Workplace safety: A meta-analysis of the roles of person and situation factors. J. Appl. Psych. 94(5):1103–1127.Crossref, Google Scholar
• Cohn JB, Wardlaw MI (2016) Financing constraints and workplace safety. J. Finance 71(5):2017–2058.Crossref, Google Scholar
• Cohn JB, Nestoriak N, Wardlaw M (2021) Private equity buyouts and workplace safety. Rev. Financial Stud. 34(10):4832–4875.Crossref, Google Scholar
• Core JE, Guay WR (2001) Stock option plans for non-executive employees. J. Financial Econom. 61(2):253–287.Crossref, Google Scholar
• Core JE, Guay WR, Kothari SP (2002) The economic dilution of employee stock options: Diluted EPS for valuation and financial reporting. Accounting Rev. 77(3):627–652.Crossref, Google Scholar
• Correia S (2015) Singletons, cluster-robust standard errors and fixed effects: A bad mix. Technical note, Duke University, Durham, NC.Google Scholar
• Courtright SH, Thurgood GR, Stewart GL, Pierotti AJ (2015) Structural interdependence in teams: An integrative framework and meta-analysis. J. Appl. Psych. 100(6):1825.Crossref, Google Scholar
• Deller C, Sandino T (2020) Effects of a tournament incentive plan incorporating managerial discretion in a geographically dispersed organization. Management Sci. 66(2):911–931.Link, Google Scholar
• Deng X, Gao H (2013) Nonmonetary benefits, quality of life, and executive compensation. J. Financial Quant. Anal. 48(1):197–218.Crossref, Google Scholar
• Derrien F, Kecskés A (2013) The real effects of financial shocks: Evidence from exogenous changes in analyst coverage. J. Finance 68(4):1407–1440.Crossref, Google Scholar
• Desai MA (2003) The divergence between book income and tax income. Tax Policy Econom. 17:169–206.Crossref, Google Scholar
• Dey A, White JT (2021) Labor mobility and antitakeover provisions. J. Accounting Econom. 71(2–3):101388.Crossref, Google Scholar
• Donangelo A (2014) Labor mobility: Implications for asset pricing. J. Finance 69(3):1321–1346.Crossref, Google Scholar
• Donangelo A, Gourio F, Kehrig M, Palacios M (2019) The cross-section of labor leverage and equity returns. J. Financial Econom. 132(2):497–518.Crossref, Google Scholar
• Dou Y, Wong MF, Xin B (2019) The effect of financial reporting quality on corporate investment efficiency: Evidence from the adoption of SFAS No. 123R. Management Sci. 65(5):2249–2266.Abstract, Google Scholar
• Drago R, Garvey GT (1998) Incentives for helping on the job: Theory and evidence. J. Labor Econom. 16(1):1–25.Crossref, Google Scholar
• Dyreng SD, Mayew WJ, Williams CD (2012) Religious social norms and corporate financial reporting. J. Bus. Finance Accounting 39(7–8):845–875.Crossref, Google Scholar
• Edmans A, Fang VW, Zur E (2013) The effect of liquidity on governance. Rev. Financial Stud. 26(6):1443–1482.Crossref, Google Scholar
• Fagan KM, Hodgson MJ (2017) Under-recording of work-related injuries and illnesses: An OSHA priority. J. Safety Res. 60:79–83.Crossref, Google Scholar
• Fang H, Nofsinger JR, Quan J (2015) The effects of employee stock option plans on operating performance in Chinese firms. J. Bank. Finance 54:141–159.Crossref, Google Scholar
• Fang VW, Tian X, Tice S (2014) Does stock liquidity enhance or impede firm innovation? J. Finance 69(5):2085–2125.Crossref, Google Scholar
• Ferri F, Li N (2020) Does option-based compensation affect payout policy? Evidence from FAS 123R. J. Financial Quant. Anal. 55(1):291–329.Crossref, Google Scholar
• Fiechter P, Landsman WR, Peasnell KV, Renders A (2023) Do industry-specific standards matter for capital allocation decisions? J. Accounting Econom. 77(2–3):101670.Google Scholar
• Frank K (2000) Impact of a confounding variable on the inference of a regression coefficient. Sociol. Methods Res. 29:147–194.Crossref, Google Scholar
• Gao H, Luo J, Tang T (2015) Effects of managerial labor market on executive compensation: Evidence from job-hopping. J. Accounting Econom. 59(2–3):203–220.Crossref, Google Scholar
• Gormley TA, Matsa DA (2014) Common errors: How to (and not to) control for unobserved heterogeneity. Rev. Financial Stud. 27(2):617–661.Crossref, Google Scholar
• Grasmick HG, Bursik RJ, Cochran JK (1991) Render unto Caesar what is Caesar’s: Religiosity and taxpayers’ inclinations to cheat. Sociol. Quart. 32:251–266.Crossref, Google Scholar
• Griffin MA, Neal A (2000) Perceptions of safety at work: A framework for linking safety climate to safety performance, knowledge, and motivation. J. Occupational Health Psych. 3:347–358.Crossref, Google Scholar
• Guardado JR, Ziebarth NR (2019) Worker investments in safety, workplace accidents, and compensating wage differentials. Internat. Econom. Rev. 60(1):133–155.Crossref, Google Scholar
• Gutiérrez E, Lourie B, Nekrasov A, Shevlin T (2020) Are online job postings informative to investors? Management Sci. 66(7):3133–3141.Link, Google Scholar
• Hale J (1998) Strategic rewards: Keeping your best talent from walking out the door. Compensation Benefits Management 14:39–50.Google Scholar
• Hall BJ, Murphy KJ (2003) The trouble with stock options. J. Econom. Perspective 17(3):49–70.Crossref, Google Scholar
• Hasan MM, Lobo GJ, Qiu B (2021) Organizational capital, corporate tax avoidance, and firm value. J. Corporate Finance 70:1–27.Crossref, Google Scholar
• Hayes RM, Lemmon M, Qiu M (2012) Stock options and managerial incentives for risk taking: Evidence from FAS 123R. J. Financial Econom. 105(1):174–190.Crossref, Google Scholar
• Heese J, Pérez-Cavazos G (2020) When the boss comes to town: The effects of headquarters’ visits on facility-level misconduct. Accounting Rev. 95(6):235–261.Crossref, Google Scholar
• Hilary G, Hui KW (2009) Does religion matter in corporate decision making in America? J. Financial Econom. 93(3):455–473.Crossref, Google Scholar
• Hochberg YV, Lindsey L (2010) Incentives, targeting, and firm performance: An analysis of non-executive stock options. Rev. Financial Stud. 23(11):4148–4186.Crossref, Google Scholar
• Holderness DK, Huffman A, Lewis‐Western M (2019) Rank-and-file equity compensation and earnings management: Evidence from stock options. J. Bus. Finance Accounting 46(9–10):1201–1236.Crossref, Google Scholar
• Hong J (2019) Managerial compensation incentives and corporate debt maturity: Evidence from FAS 123R. J. Corporate Finance 56:388–414.Crossref, Google Scholar
• Hovakimian A (2006) Are observed capital structures determined by equity market timing? J. Financial Quant. Anal. 41(1):221–243.Crossref, Google Scholar
• Huddart S, Lang M (2003) Information distribution within firms: Evidence from stock option exercises. J. Accounting Econom. 34(1–3):3–31.Crossref, Google Scholar
• Ittner CD, Lambert RA, Larcker DF (2003) The structure and performance consequences of equity grants to employees of new economy firms. J. Accounting Econom. 34(1–3):89–127.Crossref, Google Scholar
• Kennedy EJ, Lawton L (1998) Religiousness and business ethics. J. Bus. Ethics 17:163–175.Crossref, Google Scholar
• Kim H, Kung H (2017) The asset redeployability channel: How uncertainty affects corporate investment. Rev. Financial Stud. 30(1):245–280.Crossref, Google Scholar
• Kim EH, Ouimet P (2014) Broad-based employee stock ownership: Motives and outcomes. J. Finance 69(3):1273–1319.Crossref, Google Scholar
• Kogan L, Papanikolaou D (2014) Growth opportunities, technology shocks, and asset prices. J. Finance 69(2):675–718.Crossref, Google Scholar
• Kruse DL, Freeman RB, Kruse JR (2010) Do workers gain by sharing? Employee outcomes under employee ownership, profit sharing, and broad-based stock options. Shared Capitalism at Work: Employee Ownership, Profit and Gain Sharing, and Broad-Based Stock Options (University of Chicago Press, Chicago), 257–289.Crossref, Google Scholar
• Kumar A, Page JK, Spalt OG (2011) Religious beliefs, gambling attitudes, and financial market outcomes. J. Financial Econom. 102(3):671–708.Crossref, Google Scholar
• Larcker DF, Rusticus TO (2010) On the use of instrumental variables in accounting research. J. Accounting Econom. 49(3):186–205.Crossref, Google Scholar
• Leigh JP (2011) Economic burden of occupational injury and illness in the United States. Milbank Quart. 89(4):728–772.Crossref, Google Scholar
• Lewbel A (2012) Using heteroscedasticity to identify and estimate mismeasured and endogenous regressor models. J. Bus. Econom. Statist. 30(1):67–80.Crossref, Google Scholar
• Lewbel A (2018) Identification and estimation using heteroscedasticity without instruments: The binary endogenous regressor case. Econom. Lett. 165:10–12.Crossref, Google Scholar
• Li X, Ng J, Saffar W (2022) Accounting-driven bank monitoring and firms’ debt structure: Evidence from IFRS 9 adoption. Management Sci. 70(1):54–77.Link, Google Scholar
• Loderer C, Stulz R, Waelchli U (2017) Firm rigidities and the decline in growth opportunities. Management Sci. 63(9):3000–3020.Link, Google Scholar
• Mao CX, Zhang C (2018) Managerial risk-taking incentive and firm innovation: Evidence from FAS 123R. J. Financial Quant. Anal. 53(2):867–898.Crossref, Google Scholar
• Mavis CP, McNamee NP, Petmezas D, Travlos NG (2020) Selling to buy: Asset sales and acquisitions. J. Corporate Finance 62:1–17.Crossref, Google Scholar
• McGuire S, Omer T, Sharp N (2012) The impact of religion on financial reporting irregularities. Accounting Rev. 87(2):645–673.Crossref, Google Scholar
• Mendeloff J, Gray W (2005) Inside the black box: How do OSHA inspections lead to reductions in workplace injuries? Law Policy 27(2):219–237.Crossref, Google Scholar
• Morassaei S, Breslin FC, Shen M, Smith PM (2013) Examining job tenure and lost-time claim rates in Ontario, Canada, over a 10-year period, 1999–2008. Occupational Environment. Medicine 70(3):171–178.Crossref, Google Scholar
• Murphy KJ (2003) Stock-based pay in new economy firms. J. Accounting Econom. 34(1–3):129–147.Crossref, Google Scholar
• National Center for Employee Ownership (2018) A detailed overview of employee ownership plan alternatives. Accessed October 2, 2024, https://www.nceo.org/articles/comprehensive-overview-employee-ownership.Google Scholar
• National Center for Employee Ownership (2023) Employee ownership by the numbers. Accessed October 2, 2024, https://www.nceo.org/articles/employee-ownership-by-the-numbers.Google Scholar
• Neal A, Griffin M (2006) A study of the lagged relationships among safety climate, safety motivation, and accidents at the individual and group levels. J. Appl. Psych. 91:946–953.Crossref, Google Scholar
• Nizalova OY, Murtazashvili I (2016) Exogenous treatment and endogenous factors: Vanishing of omitted variable bias on the interaction term. J. Econom. Methods 5(1):71–77.Crossref, Google Scholar
• Nyberg AJ, Maltarich MA, Abdulsalam DD, Essman SM, Cragun O (2018) Collective pay for performance: A cross-disciplinary review and meta-analysis. J. Management 44(6):2433–2472.Crossref, Google Scholar
• O’Connell M, Kung MC (2007) The cost of employee turnover. Industrial Management (Des Plaines) 49(1):14–19.Google Scholar
• Oyer P, Schaefer S (2005) Why do some firms give stock options to all employees? An empirical examination of alternative theories. J. Financial Econom. 76(1):99–133.Crossref, Google Scholar
• Oyer P, Schaefer S (2006) Costs of broad-based stock option plans. J. Financial Intermediary 15(4):511–534.Crossref, Google Scholar
• Pan Y, Pikulina ES, Siegel S, Wang TY (2022) Do equity markets care about income inequality? Evidence from pay ratio disclosure. J. Finance 77(2):1371–1411.Crossref, Google Scholar
• Parker SK, Wall TD (1998) Job and Work Design: Organizing Work to Promote Well-Being and Effectiveness (Sage Publications, Thousand Oaks, CA).Crossref, Google Scholar
• Phipps DL, Malley C, Ashcroft DM (2012) Job characteristics and safety climate: The role of effort-reward and demand-control-support models. J. Occupational Health Psych. 17:279–289.Crossref, Google Scholar
• Puri M, Rocholl J, Steffen S (2011) Global retail lending in the aftermath of the US financial crisis: Distinguishing between supply and demand effects. J. Financial Econom. 100(3):556–578.Crossref, Google Scholar
• Qian C, Balaji P, Crilly D, Liu Y (2023) Better safe than sorry: CEO regulatory focus and workplace safety. J. Management 50(4):1453–1487.Google Scholar
• Regnerus MD (2003) Moral communities and adolescent delinquency: Religious contexts and community social control. Sociol. Quart. 44:523–544.Crossref, Google Scholar
• Roberts MR, Whited T (2013) Endogeneity in empirical corporate finance. Handbook of the Economics of Finance, vol. 2 (Elsevier, Amsterdam), 493–572.Google Scholar
• Roth J, Sant’Anna PHC, Bilinski A, Poe J (2023) What’s trending in difference-in-differences? A synthesis of the recent econometrics literature. J. Econometrics 235(2):2218–2244.Crossref, Google Scholar
• Rothenberg S (2003) Knowledge content and worker participation in environmental management at NUMMI. J. Management Stud. 40(7):1783–1802.Crossref, Google Scholar
• Stock J, Yogo M (2005) Testing for weak instruments in linear IV regression. Andrews DWK, ed. Identification and Inference for Econometric Models (Cambridge University Press, New York), 80–108.Crossref, Google Scholar
• Super JF, Li P, Ishqaidef G, Guthrie JP (2016) Group rewards, group composition and information sharing: A motivated information processing perspective. Organ. Behav. Human Decision Processes 134:31–44.Crossref, Google Scholar
• Thompson SB (2011) Simple formulas for standard errors that cluster by both firm and time. J. Financial Econom. 99(1):1–10.Crossref, Google Scholar
• Wall TD, Jackson PR, Davids K (1992) Operator work design and robotics system performance: A serendipitous field study. J. Appl. Psych. 77(3):353–362.Crossref, Google Scholar
• Wooldridge JM (2002) Econometric Analysis of Cross Section and Panel Data (The MIT Press, Cambridge, MA).Google Scholar
• Zolotoy L, O’Sullivan D, Chen Y (2019) Local religious norms, corporate social responsibility, and firm value. J. Bank. Finance 100:218–233.Crossref, Google Scholar