Abstract

LOMELI GOMEZ, Luis Fernando  and  BRIANO TURRENT, Guadalupe del Carmen. Stock options and financial performance on Mexican listed companies from industrial sector. Podium [online]. 2018, n.34, pp.1-20. ISSN 2588-0969.  https://doi.org/10.31095/podium.2018.34.1.

This study aims to analyze the relationship between stock options and financial performance of listed firms that belong to the industrial sector in the Mexican Stock Exchange. According to the agency theory, a variable compensation scheme may favor the interest alignment between shareholders and managers, leading to a higher financial performance. Our final study sample is composed of 135 observations made during the 2015-2017 period. Using a multivariate regression analysis, empirical results show that stock options do not influence significantly profitability indicators (ROA and ROE). However, the leverage level increases, which may motivate the management team to increase investment opportunities. This study has important implications for designing new compensation schemes for listed companies in Mexico.

Keywords : Stock Options; Corporate Governance; Financial Performance; Listed Companies; Industry Sector; Mexico.

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