Does Stock Options Plan Really Matter on the Malaysian Firm Performance?

Ismail, Zuriadah; Dockery, Everton; Ahmad, Anis Suriati

doi:10.37134/jcit.vol7.10.2017

Cited by 3 publications

(8 citation statements)

References 11 publications

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“…Meanwhile ROA has a direct impact towards market performance with the ESOP effect that showed the higher ROA of a company will also increase the market performance of the company. This result is align with the result of Ismail, et al (2017), Ismiyanthi and Mahadwartha (2017), Dewi and Hatane (2015) research that show ESOP has no impact towards ROA.…”

Section: The Indirect Impact Of Esop Towards Market Performance With supporting

confidence: 91%

“…ESOP that should be a tool that can help a company to motivate their employees to maximize the market performance of the company so that they can get much profit towards it is not proven in this research. This result is align with the research made by Ismail,et al (2017). ESOP in fact seen to has a higher risk when compared to the cash bonus that is more familiar to the employees because they can directly get the advantage or benefit without waiting, even though ESOP actually will give them a long-term benefit.…”

Section: The Indirect Impact Of Esop Towards Market Performance With supporting

confidence: 86%

“…ESOP is structured to give a profit for the employees when the share price of the company in the market is much higher then the fixed price in the ESOP contract, they can buy it with a cheaper price and trade it with a higher price. The measurement for ESOP will be using the proportion by Ismail, Dockery and Ahmad (2017),…”

Section: Employee Stock Optionmentioning

confidence: 99%

“…The measurement that is used is proportion between share granted for ESOP that year and the total of outstanding share that same year. This measurement is used following the previous research by Ismail, et al (2017),…”

Section: Identification Operational Definition and Variable Measuremmentioning

confidence: 99%

“…The dependent variable in this research is market performance. The measurement of this variable is using Tobin's Q to show the comparison between market value of the company with its cost (Ismail, at al, 2017). The data that is used for this measurement is the stock price of the company at the end of the year that the share for ESOP is granted.…”

Section: Dependent Variablementioning

confidence: 99%

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The Effect of Employee Stock Option Plan on Market Performance With Firm Performance as Intervening Variable

Laudya

Handoko

2019

JAA

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ABSTRAKEmployee Stock Option Plan (ESOP) merupakan surat kontrak dimana perusahaan akan memberikan hak kepada karyawannya untuk dapat membeli saham perusahaan dengan harga dan waktu tertentu. Program ini merupakan bentuk kompensasi yang dapat memotivasi serta menyelaraskan tujuan yang dinginkan oleh pihak prinsipal dan agen. Adanya kesamaan tujuan utama yang ingin dicapai akan memudahkan perusahaan dalam upaya peningkatan kinerja pasar perusahaan. Hubungan pengaruh antara ESOP dan kinerja pasar dapat dimediasi oleh variabel kinerja perusahaan yang diukur dengan return on asset dan return on equity. Kinerja perusahaan dapat menjadi sebuah jembatan dalam menunjukkan adanya pengaruh ESOP terhadap kinerja pasar.Penelitian ini bersifat kuantitatif dengan menggunakan data sekunder yakni laporan tahunan, dalam menguji dan menganalisis pengaruh ESOP terhadap kinerja pasar dengan kinerja perusahaan sebagai variabel mediasi. Penelitian ini menggunakan keseluruhan perusahaan yang menerapkan ESOP dari semua sektor yang terdaftar di Bursa Efek Indonesia tahun 2010-2017. Sampel penelitian berjumlah 64 data sampel yang dipilih dengan teknik purposive sampling. Teknik analisis data menggunakan analisis jalur.Hasil penelitian ini menunjukkan bahwa ESOP tidak memiliki pengaruh terhadap kinerja pasar perusahaan. ESOP tidak mempengaruhi kinerja perusahaan dengan pengukuran ROA namun memberikan pengaruh positif terhadap ROE. Dalam penelitian ini , kinerja perusahaan tidak mampu memediasi hubungan antara ESOP dan kinerja pasar.According to Putra (2018), the enhancement of wages and the health insurance is not wrong, however it is not enough yet, the employees and companies need to consider the existence of employee stock option plan (ESOP). ESOP program is a contract that give the employee a chance to buy their own company's share with an amount and price that have been decided after or at expected date (Subramanyam, 2013:371). ESOP can play intermediary role in agency conflict. This conflict happened when the principal (owner, shareholders) and the agent (manager, employee ) in a company has different objective. By applying ESOP, the employees that given this opportunity will have the same objective with the principal, which is trying to get a dividend, as for that, the employees will attempt to increase the firm performance. The aligned objective will increase the employees' motivation because of they will feel more like a part of the company. The effect that will happen after the increasing motivation is that the increasing of firm performance because the firm performance is one of the tool to measure the employees' performance.This research is focused on the effect of ESOP on firm performance (ROA and ROE) and market performance with two main model, direct effect and indirect effect with firm performance as intervening variable between ESOP and market performance. ESOP can be expected to increase the feeling of employees as a part of a company and also having the aligned objective with the principal such as increasing profit. The ...

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Section: The Indirect Impact Of Esop Towards Market Performance With supporting

confidence: 91%

Section: The Indirect Impact Of Esop Towards Market Performance With supporting

confidence: 86%

Section: Employee Stock Optionmentioning

confidence: 99%

Section: Identification Operational Definition and Variable Measuremmentioning

confidence: 99%

Section: Dependent Variablementioning

confidence: 99%

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The Effect of Employee Stock Option Plan on Market Performance With Firm Performance as Intervening Variable

Laudya

Handoko

2019

JAA

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Pengaruh employee stock option plan (ESOP) terhadap earnings management (studi pada perusahaan yang listed di bursa efek indonesia periode 2015 – 2017)

Wulansari

Maharani

2021

JEBP

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This Study aimed to determine the effect of ESOP on Earnings Management. The populations of this study were all companies listed on the Indonesia Stock Exchange for the period 2015-2017. The sample was determined by purposive sampling technique and obtained 30 company’s annual reports as the sample. The data collection method used secondary data documentation techniques that was obtained from the website www.idx.co.id. Data analysis was performed using panel data regression analysis. The results showed that the ESOP had no effect on Earnings Management. Penelitian ini bertujuan untuk mengetahui pengaruh ESOP terhadap Earnings Management. Populasi penelitian ini seluruh perusahaan yang terdaftar di Bursa Efek Indonesia periode 2015-2017. Sampel ditentukan dengan teknik purposive sampling dan diperoleh sampel 30 laporan tahunan perusahaan. Teknik pengumpulan data menggunakan teknik dokumentasi data sekunder yang diperoleh dari website www.idx.co.id. Analisis data menggunakan analisis regresi data panel. Hasil penelitian menunjukkan ESOP tidak berpengaruh terhadap Earnings Management.

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Employee Stock Option Plan (ESOP) Effect on Earnings Management

Wulansari¹,

Harahap²,

Maharani³

2021

Advances in Economics, Business and Management Research

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This study aims to determine the effect of ESOP on earnings management. The populations of this study were all companies listed on the Indonesia Stock Exchange for the period 2015-2017. The sample was determined by purposive sampling technique and obtained 30 company's annual reports as the sample. The data collection method used a secondary data documentation technique that was obtained from the website. Data analysis was performed by using panel data regression analysis. The results showed that the ESOP had no effect on Earnings Management.

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Does Stock Options Plan Really Matter on the Malaysian Firm Performance?

Cited by 3 publications

References 11 publications

The Effect of Employee Stock Option Plan on Market Performance With Firm Performance as Intervening Variable

The Effect of Employee Stock Option Plan on Market Performance With Firm Performance as Intervening Variable

Pengaruh employee stock option plan (ESOP) terhadap earnings management (studi pada perusahaan yang listed di bursa efek indonesia periode 2015 – 2017)

Employee Stock Option Plan (ESOP) Effect on Earnings Management

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