NTU Management Rev i ew Vol . 31 No. 1 Apr. 2021, 71-115 DOI:10.6226/NTUMR.202104_31(1).0003 71 Executive Stock Options, Corporate Cash Holdings and M&A Decisions 高階主管股票選擇權、現金持有與併購決策 Yu-Lin Huang, Department of Finance, National Taichung University of Science and Technology 黃幼琳 / 國立臺中科技大學財務金融學系 Yenn-Ru Chen, Department of Finance, National Chengchi University 陳嬿如 / 國立政治大學財務管理學系 Bai-Sian Chen, Department of Finance, National Chengchi University 陳佰弦 / 國立政治大學財務管理學系 Received 2017/9, Final revision received 2020/9 Abstract This study examines the effect of corporate cash holdings on the risk-taking activities induced by executive stock options (ESOs). Using mergers and acquisitions (M&As) as the proxy of corporate decisions more associated with idiosyncratic risk taking, we find excess cash holdings stimulate the M&A bidding probability induced by the risk incentive of ESOs (vega). The probability of conducting ESOs-induced M&As in cash-rich firms is 7.58% higher than that in non-cash-rich firms. The positive impact of excess cash on the ESOs-induced M&A decisions is more pronounced in firms with low leverage and those in the old economy. Through analyses of the announcement effect and the oneyear profitability effect, our results show the market considers the ESOs-induced M&A decisions made by cash-rich firms are more associated with precautionary motives rather than agency incentives. However, while cash-rich firms undertaking ESOs-induced M&As have better profitability than those not conducting ESOs-induced M&As, how the market assigns future valuations to cash-rich firms conducting ESOs-induced M&As still depends on the corporate governance environment of these firms. 【Keywords】 executive stock options, corporate cash holdings, mergers and acquisitions 摘 要 本研究探討現金持有於高階主管股票選擇權(ESOs) 誘發之風險承擔行為之影響，以 企業併購作為衡量指標。實證發現公司持有超額現金將有助於提升高階主管因ESOs 風險誘因而進行併購決策之機率。當持有超額現金，高階主管因ESOs 而進行併購之 機率顯著高於未持有超額現金公司之併購機率，差異約達7.58%。同時，超額現金對 於因ESOs 而進行併購決策之正向影響，在低負債企業與隸屬舊經濟產業之公司中較 為明顯。此外，透過宣告效果與績效表現之分析，市場對於超額現金公司因ESOs 而 併購之決策較傾向認定為預防性動機所致。雖此決策將有助公司未來營運績效，但市 場如何衡量其併購後評價仍取決於其公司治理環境。 【關鍵字】高階主管股票選擇權、現金持有、企業併購 領域主編：黃泓人教授
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