Broad-based Employee Stock Options in US 'New Economy' Firms
James C. Sesil
City University of Hong Kong
Maya K. Kroumova
New York Institute of Technology
Rutgers School of Management and Labor Relations - New Brunswick
Douglas L. Kruse
British Journal of Industrial Relations, Vol. 40, pp. 273-294, 2002
This paper compares the performance of 229 "New Economy" firms offering broad-based stock options to that of their non-stock option counterparts. A simple comparison of these firms reveals that the former have higher shareholder returns, Tobin's q and new knowledge generation. Multivariate analysis using panel data also suggests that the adoption of a stock option plan results in higher levels of value added per employee. However, we do not find evidence that these plans result in superior growth in Tobin's q or new knowledge generation.
Number of Pages in PDF File: 22Accepted Paper Series
Date posted: May 6, 2003
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