Employee Share Options and Firm Performance: A Case Study of 2 Companies Listed in Malaysia - Softcover

Rao, Mahandra; Sang Long, Choi

Softcover

ISBN 10: 3846583952 ISBN 13: 9783846583951

Publisher: LAP LAMBERT Academic Publishing, 2012

Synopsis

The impact of employee share option schemes (ESOs) on the performance of two companies of differing sizes, listed on the Stock Exchange in Malaysia,were studied. ESOs is supposed to align the interest of owners and managers and hence improve corporate perforamnce. However, the results indicate that deterioration in financial performance was not arrested by ESOs and the smaller firm experienced a greater deterioration. The alignment of interest theory may not be applicable as the majority owners are also the managers. This study concludes that ESOs do not motivate employees and thus the objectives were not fulfilled and that the main beneficiaries are the majority owners/managers and the losers are the minority shareholders.

About this title

About the Author

The main author, Mr Mahandra Rao, is a Chartered Accountant by profession and has a varied experience of more than 27 years in audit, manufacturing and education services sectors in Malaysia. He obtained his basic degree in the sciences and went on to take up a professional course in Accountancy and recently completed his MBA.

Edition details

• Publisher: LAP LAMBERT Academic Publishing
• Publication date: 2012
• Language: English
• ISBN 10: 3846583952
• ISBN 13: 9783846583951
• Binding: Paperback
• Number of pages: 80