Market Valuation and Employee Stock Options

Published Online:https://doi.org/10.1287/mnsc.1060.0539

References

  • Baker M., Stein J. C. Market liquidity as a sentiment indicator. J. Financial Markets (2004) 7(3):271–299CrossrefGoogle Scholar
  • Baker M., Wurgler J. Market timing and capital structure. J. Finance (2002) 57:1–32CrossrefGoogle Scholar
  • Baker M., Stein J. C., Wurgler J. When does the market matter? Stock prices and the investment of equity dependent firms. Quart. J. Econom. (2003) 118:969–1005CrossrefGoogle Scholar
  • Bergman N., Jenter D. Employee sentiment and stock option compensation. (2003) . Working paper, MIT, Cambridge, MAGoogle Scholar
  • Black F. Studies of stock market volatility change. 1976 Proc. Amer. Statist. Assoc., Bus. Econom. Statist. Section (1976) American Statistical Association, Alexandria, VA:177–181Google Scholar
  • Brav A. Inference in long-horizon event studies: A Bayesian approach with application to initial public offerings. J. Finance (2000) 55:1979–2016CrossrefGoogle Scholar
  • Brennan M., Chordia T., Subrahmanyam A. Alternative factor specifications, security characteristics, and the cross-section of expected stock returns. J. Financial Econom. (1998) 49:345–373CrossrefGoogle Scholar
  • Options for everyoneBusiness Week (1996) July 22):80Google Scholar
  • Campbell J., Lo A., MacKinlay C.The Econometrics of Financial Markets (1997) (Princeton University Press, Princeton, NJ) CrossrefGoogle Scholar
  • Carter M. E., Lynch L. J. The effect of stock option repricing on employee turnover. J. Accounting Econom. (2004) 37:91–112CrossrefGoogle Scholar
  • Core J., Guay W. Stock option plans for non-executive employees. J. Financial Econom. (2001) 61:253–287CrossrefGoogle Scholar
  • D'Mello R., Shroff E. Equity undervaluation and decisions related to repurchase tender offers: An empirical investigation. J. Finance (2000) 55:2399–2424CrossrefGoogle Scholar
  • Fenn G. W., Liang N. Good news and bad news about share repurchases. (1997) . Working paper, Milken Institute, Santa Monica, CAGoogle Scholar
  • Frankel R., Lee C. M. C. Accounting valuation, market expectation, and cross-sectional stock returns. J. Accounting Econom. (1998) 25:283–319CrossrefGoogle Scholar
  • Garvey G. T., Milbourn T. T. Do stock prices incorporate the potential dilution of employee stock options? (2001) . Working paper, Claremont Graduate University, Claremont, CAGoogle Scholar
  • Gilles C., LeRoy S. Econometric aspects of the variance bounds tests: A survey. Rev. Financial Stud. (1991) 4:753–791CrossrefGoogle Scholar
  • Graham J. R. Debt and the marginal tax rate. J. Finance (1996) 41:41–73Google Scholar
  • Graham J. R., Harvey C. R. The theory and practice of corporate finance: Evidence from the field. J. Financial Econom. (2001) 60(2–3):187–243CrossrefGoogle Scholar
  • Hall B., Liebman J. The taxation of executive compensation. (2000) . Working Paper 7596, National Bureau of Economic Research, Cambridge, MAGoogle Scholar
  • Heath C., Huddart S., Lang M. Psychological factors and stock option exercise. Quart. J. Econom. (1999) 114:601–627CrossrefGoogle Scholar
  • Hirshleifer D., Teoh S. H. Limited attention, information disclosure, and financial reporting. J. Accounting Econom. (2003) 36:337–386CrossrefGoogle Scholar
  • Ittner C. D., Lambert R. A., Larcker D. F. The structure and performance consequences of equity grants to employees of new economy firms. J. Accounting Econom. (2003) 34:89–127CrossrefGoogle Scholar
  • Jenter D. C. Market timing and managerial portfolio decisions. J. Finance (2005) 60:1903–1949CrossrefGoogle Scholar
  • Kaplan S. N., Zingales L. Do investment-cash flow sensitivities provide useful measures of financing constraints. Quart. J. Econom. (1997) 115:695–705Google Scholar
  • Kedia S., Mozumdar A. Performance impact of employee stock options. (2002) . Working paper, Harvard Business School, Cambridge, MAGoogle Scholar
  • Korajczyk R., Lucas D., McDonald R. The effects of information releases on the pricing and timing of equity issues. Rev. Financial Stud. (1991) 4:685–708CrossrefGoogle Scholar
  • Kulatilaka B., Marcus A. J. Valuing employee stock options. Financial Analysts J. (1994) 50(November–December):46–56CrossrefGoogle Scholar
  • Lamont O., Polk C., Saa-Requejo J. Financial constraints and stock returns. Rev. Financial Stud. (2001) 14:529–554CrossrefGoogle Scholar
  • La Porta R., Lakonishok J., Shleifer A., Vishny R. Good news for value stocks: Further evidence on market efficiency. J. Finance (1997) 52:859–874CrossrefGoogle Scholar
  • Lazear E. P. Output-based pay: Incentive, retention or sorting? (2001) . Working paper, Stanford University, Stanford, CAGoogle Scholar
  • Lee C., Myers J., Swaminathan B. What is the intrinsic value of the Dow? J. Finance (1999) 54:1693–1741CrossrefGoogle Scholar
  • Loughran T., Ritter J. R. The new issues puzzle. J. Finance (1995) 50:23–51CrossrefGoogle Scholar
  • Lucas D., McDonald R. L. Equity issues and stock price dynamics. (1991) . Working Paper 3169, National Bureau of Economic Research, Cambridge, MAGoogle Scholar
  • Marsh P. The choice between equity and debt: An empirical study. J. Finance (1982) 37:121–144CrossrefGoogle Scholar
  • Mehran H., Tracy J. The effect of employee stock options on the evolution of compensation in the 1990s. Econom. Policy Rev. (Federal Reserve Bank of New York) (2001) 7(3):17–34Google Scholar
  • Myers S. C., Majluf N. S. Corporate financing and investment decisions when firms have information that investors do not have. J. Financial Econom. (1984) 13:187–221CrossrefGoogle Scholar
  • Ohlson J. Earning, book values and dividends in equity valuation. Contemporary Accounting Res. (1995) 11:661–687CrossrefGoogle Scholar
  • Oyer P. Why do firms use incentives that have no incentive effects? J. Finance (2004) 59:1619–1649CrossrefGoogle Scholar
  • Oyer P., Schaefer S. Why do some firms give stock options to all employees? An empirical examination of alternative theories. J. Financial Econom. (2005) 76:99–133CrossrefGoogle Scholar
  • Pagano M., Panetta F., Zingales L. Why do companies go public? An empirical analysis. J. Finance (1998) 53:27–64CrossrefGoogle Scholar
  • Penman S., Sougiannis T. A comparison of dividend, cash flow, and earnings approaches to equity valuation. Contemporary Accounting Res. (1998) 15:343–383CrossrefGoogle Scholar
  • Preinreich G. Annual survey of economic theory: The theory of depreciation. Econometrica (1938) 6:219–241CrossrefGoogle Scholar
  • Shleifer A., Vishny R. Stock market driven acquisitions. J. Financial Econom. (2003) 70(3):295–311CrossrefGoogle Scholar
  • Smith C., Watts R. The investment opportunity set and corporate financing, dividends, and compensation policies. J. Financial Econom. (1992) 32:263–292CrossrefGoogle Scholar
  • Stein J. Convertible bonds as back door equity financing. J. Financial Econom. (1992) 32:3–21CrossrefGoogle Scholar
  • Stephens C., Weisbach M. Actual share reacquisitions in open-market repurchase programs. J. Finance (1998) 53:313–333CrossrefGoogle Scholar
  • Yermack D. Do corporations award CEO stock options effectively? J. Financial Econom. (1995) 39(2–3):237–269CrossrefGoogle Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.