We examine the impact of the cultural norm of uncertainty avoidance on employee stock option (ESO) exercise behaviour using proprietary data from a multinational firm. We find that employees from countries with higher levels of uncertainty avoidance exercise their stock options earlier. These...

Gray markets arise when an intermediary buys a product in a lower-priced, often emerging market and resells it to compete with the product’s original manufacturer in a higher-priced, more developed market. Evidence suggests that gray markets make the original manufacturer worse off globally by...

Prior research documents a negative link between risk and executive holding of stock (positive link observed for options). We find a similar negative relation for non-executive holding of stock. Our finding is consistent with the view that non-executives not only face significant incentives to...