Non-executive employee stock options and corporate innovation

• 成果类型: Article
• 署名作者: Chang, Xin; Fu, Kangkang; Low, Angie; Zhang, Wenrui
• 署名单位: Nanyang Technological University; INSEAD Business School; Chinese University of Hong Kong
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2014.09.002
• 发表日期: 2015
• 页码: 168-188
• 关键词: Employee stock options; Corporate innovation; Risk-taking incentives; Employee compensation

摘要

We provide empirical evidence on the positive effect of non-executive employee stock options on corporate innovation. The positive effect is more pronounced when employees are more important for innovation, when free-riding among employees is weaker, when options are granted broadly to most employees, when the average expiration period of options is longer, and when employee stock ownership is lower. Further analysis reveals that employee stock options foster innovation mainly through the risk-taking incentive, rather than the performance-based incentive created by stock options. (C) 2014 Elsevier B.V. All rights reserved.