Convexity , Magnification , and Translation : the Effect of Managerial Option ‐ Based Compensation on Corporate Cash Holdings

@inproceedings{Belghitar2014ConvexityM,
  title={Convexity , Magnification , and Translation : the Effect of Managerial Option ‐ Based Compensation on Corporate Cash Holdings},
  author={Yacine Belghitar},
  year={2014}
}
  • Yacine Belghitar
  • Published 2014
Using the distinctions among the convexity, magnification, and translation effects, we identify the pertinent parameters and examine empirically the relation between cash holdings and option‐based managerial compensation. We show that changes in delta reduce the effects of magnification and convexity on managerial risk aversion. We also provide evidence… CONTINUE READING