Show simple item record

dc.contributor.authorHlaing, Khin Phyo 20:33:51 (GMT) 20:33:51 (GMT)
dc.description.abstractThis study examines how the tax treatment of corporate tax-deductible restricted share units and employee tax-favoured stock options at the employer and employee level affect the extent of their use in executive equity compensation packages among public firms. I appeal to two theories, namely, corporate tax planning and managerial power, to address the research question. I hand-collect executive compensation data of 143 top non-financial Canadian firms traded on the Toronto Stock Exchange for the 2005-2015 period. I find some evidence that firms expecting a high tax rate use the proportion of executive equity compensation via corporate tax-deductible RSUs to a greater extent compared to firms expecting a low tax rate at the vesting year. The results are consistent with the inference that managers demanding a higher level of employee tax-favoured options in their total equity compensation when they have power to influence the executive compensation. The results also support that managerial power weakens the positive association between firms expecting a high tax rate at the vesting year and the use of corporate tax-deductible RSUs in executive equity compensation. The findings suggest that tax policy that artificially distinguishes among types of equity compensation, such as the current Canadian legislation, affects executive equity compensation design.en
dc.publisherUniversity of Waterlooen
dc.subjectExecutive compensationen
dc.subjectManagerial poweren
dc.subjectCorporate tax planningen
dc.titleThe Effect of Canadian Tax Policy on Executive Equity Grants: Corporate Tax Planning and Managerial Poweren
dc.typeDoctoral Thesisen
dc.pendingfalse of Accounting and Financeen of Waterlooen
uws-etd.degreeDoctor of Philosophyen
uws.contributor.advisorChen, Changling
uws.contributor.advisorKlassen, Kenneth
uws.contributor.affiliation1Faculty of Artsen

Files in this item


This item appears in the following Collection(s)

Show simple item record


University of Waterloo Library
200 University Avenue West
Waterloo, Ontario, Canada N2L 3G1
519 888 4883

All items in UWSpace are protected by copyright, with all rights reserved.

DSpace software

Service outages