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Do CEOs of target firms award themselves more options prior to a takeover?
Dissertation (MBA)--University of Pretoria, 2010.
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| Format: | Thesis |
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University of Pretoria
2013
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| _version_ | 1867613718488023040 |
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| access_status_str | Open Access |
| author2 | Ward, Mike |
| author_browse | Ward, Mike |
| author_facet | Ward, Mike |
| collection | Thesis |
| dc_rights_str_mv | © 2010, University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretori |
| description | Dissertation (MBA)--University of Pretoria, 2010. |
| format | Thesis |
| id | oai:repository.up.ac.za:2263/26047 |
| institution | University of Pretoria (South Africa) |
| last_indexed | 2026-06-10T12:40:36.114Z |
| license_str | Other — see source repository |
| provenance_str_mv | Harvested via OAI-PMH from UPSpace — University of Pretoria Institutional Repository |
| publishDate | 2013 |
| publishDateRange | 2013 |
| publishDateSort | 2013 |
| publisher | University of Pretoria |
| publisherStr | University of Pretoria |
| record_format | dspace |
| source_str | UPSpace — University of Pretoria Institutional Repository |
| spelling | oai:repository.up.ac.za:2263/26047 Do CEOs of target firms award themselves more options prior to a takeover? Ward, Mike ichelp@gibs.co.za Slabbert, Sean UCTD Options Target company Market signaling Insider trading CEO behaviour Chief executive officer (CEO) Dissertation (MBA)--University of Pretoria, 2010. Stock options increasingly feature as part of CEO compensation, and there is evidence that CEOs of South African listed target companies engage in the practice of awarding themselves more options prior to takeover. This finding is consistent with CEO behaviour of foreign companies as explained by literature. After the recent financial crisis of 2008, there is a greater likelihood that financially stable companies might consider acquiring struggling companies with attractive potential future earnings. By gaining insight into the practices of stock option grants to CEOs, acquiring companies can ensure fair practice as well as not paying an undue premium for a target company. This study was conducted using a sample of 39 Johannesburg stock exchange (JSE) listed target companies, which were acquired during the period 2005- 2009. The focus was on the number of options awarded prior to the announcement date of the takeover in relation to subsequent options awarded. A median test, together with a Chi-squared test was used to evaluate the independence of option grants prior to acquisition and the actual acquisition transaction. Strong evidence was found that these two activities are not independent. Copyright Gordon Institute of Business Science (GIBS) unrestricted 2013-09-07T02:11:10Z 2011-07-04 2013-09-07T02:11:10Z 2010-11-10 2010 2011-07-03 Dissertation Slabbert, S 2010, Do CEOs of target firms award themselves more options prior to a takeover?, MBA dissertation, University of Pretoria, Pretoria, viewed yymmdd < http://hdl.handle.net/2263/26047 > F11/506/hj http://hdl.handle.net/2263/26047 http://upetd.up.ac.za/thesis/available/etd-07032011-134734/ © 2010, University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretori application/pdf University of Pretoria |
| spellingShingle | UCTD Options Target company Market signaling Insider trading CEO behaviour Chief executive officer (CEO) Do CEOs of target firms award themselves more options prior to a takeover? |
| title | Do CEOs of target firms award themselves more options prior to a takeover? |
| title_full | Do CEOs of target firms award themselves more options prior to a takeover? |
| title_fullStr | Do CEOs of target firms award themselves more options prior to a takeover? |
| title_full_unstemmed | Do CEOs of target firms award themselves more options prior to a takeover? |
| title_short | Do CEOs of target firms award themselves more options prior to a takeover? |
| title_sort | do ceos of target firms award themselves more options prior to a takeover |
| topic | UCTD Options Target company Market signaling Insider trading CEO behaviour Chief executive officer (CEO) |
| url | http://hdl.handle.net/2263/26047 http://upetd.up.ac.za/thesis/available/etd-07032011-134734/ |