Abstract

http://ssrn.com/abstract=77488
 
 

References (27)



 
 

Citations (115)



 


 



Psychological Factors and Stock Option Exercise


Chip Heath


Stanford Graduate School of Business

Steven J. Huddart


Pennsylvania State University, University Park - Department of Accounting

Mark H. Lang


University of North Carolina at Chapel Hill

March 25, 1998


Abstract:     
We investigate stock option exercise decisions by over 50,000 employees at seven corporations. Controlling for economic factors, psychological factors in*uence exer- cise. Consistent with psychological models of beliefs, employees exercise in response to stock price trends|exercise is positively related to stock returns during the pre- ceding month and negatively related to returns over longer horizons. Consistent with psychological models of values that include reference points, employee exercise activity roughly doubles when the stock price exceeds the maximum price attained during the previous year.

Number of Pages in PDF File: 47

JEL Classification: D81, J33, M12

working papers series


Download This Paper

Date posted: April 19, 1998  

Suggested Citation

Heath, Chip and Huddart, Steven J. and Lang, Mark H., Psychological Factors and Stock Option Exercise (March 25, 1998). Available at SSRN: http://ssrn.com/abstract=77488 or http://dx.doi.org/10.2139/ssrn.77488

Contact Information

Chip Heath
Stanford Graduate School of Business ( email )
518 Memorial Way
Stanford, CA 94305-5015
United States

Steven J. Huddart (Contact Author)
Pennsylvania State University, University Park - Department of Accounting ( email )
University Park, PA 16802-3603
United States
814-865-3271 (Phone)
814-863-8393 (Fax)
HOME PAGE: http://www.personal.psu.edu/sjh11
Mark H. Lang
University of North Carolina at Chapel Hill ( email )
Kenan-Flagler Business School
McColl Building
Chapel Hill, NC 27599-3490
United States
919-962-1644 (Phone)
919-962-4727 (Fax)

Feedback to SSRN


Paper statistics
Abstract Views: 4,271
Downloads: 829
Download Rank: 14,971
References:  27
Citations:  115

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo8 in 0.250 seconds