Showing 1 - 9 of 9
Purpose – This paper aims to analyze the valuation of stock options from the perspective of an employee exhibiting preferences as described by cumulative prospect theory (CPT). In addition, it elaborates on their incentives effect and some implications in terms of design aspects....
Persistent link: https://www.econbiz.de/10009318559
Persistent link: https://www.econbiz.de/10010814971
Persistent link: https://www.econbiz.de/10010814972
Purpose – Firms will, at times, replace employee holdings of out-of-the-money stock options with new ones that have lower exercise prices. This paper seeks to examine how stockholders view such actions. Design/methodology/approach – The stock price reaction to announcements of option...
Persistent link: https://www.econbiz.de/10010814980
Purpose –This paper aims to test the effects that different compensation policies have on managerial discretion with regard to stock options. Design/methodology/approach – Hand-collected data from Securities and Exchange Commission registration statements are used to analyze the effects of...
Persistent link: https://www.econbiz.de/10010895038
The volatility information content of stock options for individual firms is measured using option prices for 149 U.S. firms and the S&P 100 index. ARCH and regression models are used to compare volatility forecasts defined by historical stock returns, at-the-money implied volatilities and...
Persistent link: https://www.econbiz.de/10010302536
We investigate the association of various firm-specific and market-wide factors with the riskneutral skewness (RNS) implied by the prices of individual stock options. Our analysis covers 149 U.S. firms over a four-year period. Our choice of firms is based on adequate liquidity and trading...
Persistent link: https://www.econbiz.de/10010302552
Purpose – The purpose of this paper is to examine the factors affecting the relationships between CEO stock option compensation and earnings management. Design/methodology/approach – Regression of CEO stock option compensation and other factors on measures of discretionary accruals. Findings...
Persistent link: https://www.econbiz.de/10004987740
repricing. But, once the exercise price has been reset, option holders are more likely to exercise ESOs early. Second, option … repricing is less cost-effective than standard options in providing incentives. Practical implications – This research finds … that issuing new options proves more efficient than option repricing in providing incentives. In turn, this research offers …
Persistent link: https://www.econbiz.de/10004987749