Based on the robustness checks, we find that the empirical results in this study are robust with respect to industrial and yearly controls. In addition, the impact of stock-based compensation on firm performance increases with firm profitability. This result also holds in the tests of market performance, Tobin’s q, as the dependent variable, or the payfor-performance
sensitivity as the independent variable. Moreover, the use of a lagged stock-based/total compensation ratio does not change the result. Therefore, the non-monotonic relationship between stock- based compensation and firm performance can be captured in the quantile regression regardless of the variations in different industries and years, and the various measures of accounting or market performance.