Citations (1)


Footnotes (2)



Measuring Equity Issuance

Stephen B. McKeon

University of Oregon - Department of Finance

February 15, 2015

Cash proceeds from employees' exercise of options are substantial, totaling over $1 trillion in aggregate since 1985. Although reported as equity proceeds, option exercises are unlikely to inform us about how contemporaneous conditions influence managers' motives to issue equity, because the option grant decision is typically made years prior to the share issuance. Because equity issuance data available through Compustat and CRSP pool all issuance mechanisms into a single figure, option proceeds are commingled with IPOs, SEOs, and private placements. I demonstrate that a filter for pooled data effectively identifies the firm-initiated component, leading to sharper inferences in empirical tests.

Number of Pages in PDF File: 55

Keywords: employee stock options, financing decisions, capital structure, cash holdings

JEL Classification: G14, G32

Open PDF in Browser Download This Paper

Date posted: September 2, 2011 ; Last revised: February 16, 2015

Suggested Citation

McKeon, Stephen B., Measuring Equity Issuance (February 15, 2015). Available at SSRN: http://ssrn.com/abstract=1920985 or http://dx.doi.org/10.2139/ssrn.1920985

Contact Information

Stephen B. McKeon (Contact Author)
University of Oregon - Department of Finance ( email )
Lundquist College of Business
1208 University of Oregon
Eugene, OR 97403
United States
Feedback to SSRN

Paper statistics
Abstract Views: 1,151
Downloads: 298
Download Rank: 65,451
Citations:  1
Footnotes:  2

© 2015 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo8 in 1.188 seconds