Starting from 2003, Microsoft and many other companies have either gradually reduced or completely replaced stock options with restricted stocks in their compensation plans. This raises an interesting question: which form of compensation is better, stock or options? This chapter makes an...

Stock ownership and incentive options are used by companies to retain and motivate employees and managers. These grants usually come with vesting features which require grantees to hold the assets for certain periods. This vesting requirement makes the grantee's total wealth highly...

This is a companion paper to our previous study in Cao and Wei (2005) on stock market temperature anomaly for eight international stock markets. The temperature anomaly is characterized by a negative relationship between stock market returns and temperature. This line of work relies on the...