Abudy, Menachem; Benninga, Simon - In: Journal of Banking & Finance 37 (2013) 12, pp. 5500-5510
We adapt the Benninga et al. (2005) framework to value employee stock options (ESOs). The model quantifies non-diversification effects, is computationally simple, and provides an endogenous explanation of ESO early-exercise. Using a proprietary dataset of ESO exercise events we measure the...