22 Pages Posted: 6 May 2003
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.
Suggested Citation: Suggested Citation
Sesil, James C. and Kroumova, Maya K. and Blasi, Joseph and Kruse, Douglas L., Broad-based Employee Stock Options in US 'New Economy' Firms. British Journal of Industrial Relations, Vol. 40, pp. 273-294, 2002. Available at SSRN: https://ssrn.com/abstract=313255
By Kevin Murphy
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