Paper Title
Share-Based Compensations and Firms’ Trading Behavior

The objective of this paper is to investigate the relationship between the incentive effect of share-based compensations and firms’ trading behaviors. The empirical results document that managers who are granted with stock would have the incentive to change their trading behaviors and further sell their holding shares. While the results could not reveal that the grant of stock option has the impact on managers’ trading behavior, high-ownership managers and managers who are granted with high-valued shares have incentives to sell their previously owned shares. Key-Words- Incentive effect, Share-based compensation, Trading behavior