The option to quit: The effect of employee stock options on turnover

• 成果类型: Article
• 署名作者: Aldatmaz, Serdar; Ouimet, Paige; Van Wesep, Edward D.
• 署名单位: George Mason University; University of North Carolina; University of North Carolina Chapel Hill; University of North Carolina School of Medicine; University of Colorado System; University of Colorado Boulder
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2017.10.007
• 发表日期: 2018
• 页码: 136-151
• 关键词: Employee stock options; turnover

摘要

We show that in the years following a large broad-based employee stock option (BBSO) grant, employee turnover falls at the granting firm. We find evidence consistent with a causal relation by exploiting unexpected changes in the value of unvested options. A large fraction of the reduction in turnover appears to be temporary with turnover increasing in the third year following the year of the adoption of the BBSO plan. The increase three years post-grant is equal in magnitude to the cumulative decrease in turnover over the three prior years, suggesting that long-vesting BBSO plans delay, instead of prevent, turnover. (C) 2017 Elsevier B.V. All rights reserved.