Determinants of stock option use by Japanese companies

Research output: Contribution to journalArticlepeer-review

23 Citations (Scopus)


Japanese data show a negative relation between leverage and the probability of firms' use of stock options. Such a relation is more marked for firms affiliated with specific keiretsu or main banks. This evidence reflects the fact that Japanese companies are more reliant on debt financing and that the agency cost of debt is a central issue in corporate governance. Results show that the frequency of the firms' use of stock options is positively associated with firm size. Finally, independent firms, which reveal more concern about shareholder wealth, are more likely to use stock options.

Original languageEnglish
Pages (from-to)251-269
Number of pages19
JournalReview of Financial Economics
Issue number3
Publication statusPublished - Aug 18 2006
Externally publishedYes

All Science Journal Classification (ASJC) codes

  • Finance
  • Economics and Econometrics


Dive into the research topics of 'Determinants of stock option use by Japanese companies'. Together they form a unique fingerprint.

Cite this