by: Sesil, James; Kroumova, Maya; Blasi, Joseph; Kruse, Douglas
Source: British Journal of Industrial Relations 40:2
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.
Link: Broad-based Employee Stock Options in US 'New Economy' Firms
Publication Date: 2002-06-01