Table 1 Performance measures used in performance-vested option plans
From: ROE as a performance measure in performance-vested stock option contracts in China
| Â | Â | Â | Number | Percent |
Panel A: Frequency of firms using each performance measure (n = 314) | ||||
ROE | 263 | 83.80 | ||
Net income | 301 | 95.86 | ||
Sales revenue | 42 | 13.38 | ||
Share price/shareholder return | 3 | 0.96 | ||
| Â | Mean | Q1 | Median | Q3 |
Number of measures used | 1.94 | 2.00 | 2.00 | 2.00 |
| Â | Â | ROE used | ROE not used | p value |
|  |  | (n = 263) | (n = 51) |  |
Panel B: χ 2 tests of differences of reported performance measures, conditional on the use of ROE (n = 314) | ||||
Net income | Â | 96.20% | 94.12% | 0.50 |
Sales revenue | Â | 6.84% | 47.06% | <0.01 |
Share price/shareholder return | Â | 1.14% | 0.00% | 0.45 |