Exercise behavior, valuation, and the incentive effects of employee stock options

• 成果类型: Article
• 署名作者: Bettis, JC; Bizjak, JM; Lemmon, ML
• 署名单位: Portland State University; Arizona State University; Arizona State University-Tempe; Utah System of Higher Education; University of Utah
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2004.05.006
• 发表日期: 2005
• 页码: 445-470
• 关键词: Executive compensation; option exercises; Employee stock options; corporate governance

摘要

We use a large database on ESO exercises to document characteristics of exercise behavior and calibrate a utility-based model for measuring how differences in exercise behavior are manifested in option values and incentives. Option values and incentives computed from the model calibrations are compared to those computed from models used to value tradable options. Our analysis provides guidance to both academics and practitioners about how differences in exercise behavior and model choice affect measures of ESO values and incentives, and underscores the importance of gaining a thorough understanding of the underlying economic forces that affect the behavior of ESO holders. (c) 2004 Elsevier B.V. All rights reserved.