Employee stock option exercises: an empirical analysis

Article Abstract:

The exercise behavior of employees holding nontransferable long-term stock options are studied. Results show that employees often exercise their stock option early. Factors influencing their decisions include stock price movements, market-to-market strike ratios, vesting schedule, maturity and volatility. It is also shown that assumptions of the Modified Black-Scholes option pricing formula cannot be applied to employee stock options.

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Market valuation of employee stock options

Article Abstract:

The correlation between a large company's share prices and its employee stock option (ESO) is shown with a negative relation, with ESO affecting share prices positively in the early stages of vesting and shareholders including ESOs in net cost in later stages. The correlation has not been tested on small firms. Given the relationship, investor valuation of the ESO includes the value in the stock price.

Pension, health, and welfare funds, Pension Funds, Stock Ownership Plans, Accounting and auditing, Investments, Capital market, Capital markets, Employee stock ownership plans

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Purchase versus pooling in stock-for-stock acquisitions: Why do firms care?

Article Abstract:

Research is presented describing the study of executive compensation levels of companies involved in the direct acquisition of operations when pooling or purchase of stock is involved.

Business Methods, Research, Business, Business planning, Inventory control, Business research

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