kaal:claim:5454054-010

LER reduces stock price volatility because ongoing consumption-based voucher rewards give shareholders a reason to hold rather than sell, which stabilizes demand for the issuer's stock.

Source quote, verbatim

LER counteracts selling pressure by offering ongoing consumption-based voucher rewards that incentivize shareholders to retain their investments over the long term. This retention effect stabilizes demand for the company's stock, resulting in lower price fluctuations

From

Wulf A. Kaal, Liquid Equity Rewards (2025), Benefits for Listed Companies, p. 13
https://ssrn.com/abstract=5454054 · source PDF

Cite as

Wulf A. Kaal, Liquid Equity Rewards (2025). SSRN: https://ssrn.com/abstract=5454054

Holds when

listed companies adopting LER
shareholders who would otherwise sell to realize gains or meet liquidity needs

Classification

mechanismsupport: arguedcorporate-governance

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