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Stock Options and Productivity: An empirical analysis of Japanese firms

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  • MORIKAWA Masayuki

Abstract

This paper analyzes the relationship between the use of stock options and productivity by employing firm-level panel data from the Basic Survey of Japanese Business Structure and Activities. According to the analysis, the use of stock options has a positive impact on firm productivity. Productivity steadily increases after the adoption of stock options. In addition, we found suggestive evidence that R&D investment increases after the introduction of stock options. These results imply that the deregulation on the use of stock options in 1997 and the subsequent legal reforms have had positive contributions to the productivity performance of Japanese firms.

Suggested Citation

  • MORIKAWA Masayuki, 2012. "Stock Options and Productivity: An empirical analysis of Japanese firms," Discussion papers 12011, Research Institute of Economy, Trade and Industry (RIETI).
    • Handle: RePEc:eti:dpaper:12011
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    References listed on IDEAS

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    Cited by:

    1. Nikolay Naydenov, 2014. "Recent Trends in Japanese Corporate Governance," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 1, pages 88-115.

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