Whether CEO stock-based pay effectively enhances fir performance
has been a long timsult also holds in the tests of market performance, Tobin’s q, as the dependent e subject of debate for both academics and practitioners. Using a large quantity of U.S. S&P firm data for the years1993–2005, . Based on the robustness checks, we find that the empirical results inthis study are robust with respect to industrial and yearly controls. In addition, the impact of stock-based compensation on firm performanceincreases with firm profitability. This revariable, or the payfor-performance sensitivity