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Broad-based Employee Stock Options in US 'New Economy' Firms

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Author Info
James C. Sesil
Maya K. Kroumova
Joseph R. Blasi
Douglas L. Kruse
Abstract

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. Copyright Blackwell Publishers Ltd/London School of Economics 2002.

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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/1467-8543.00232
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Publisher Info
Article provided by Blackwell Publishers Ltd/London School of Economics in its journal British Journal of Industrial Relations.

Volume (Year): 40 (2002)
Issue (Month): 2 (06)
Pages: 273-294
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:bla:brjirl:v:40:y:2002:i:2:p:273-294

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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0007-1080

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  1. Joseph R. Blasi & Richard B. Freeman & Chris Mackin & Douglas L. Kruse, 2008. "Creating a Bigger Pie? The Effects of Employee Ownership, Profit Sharing, and Stock Options on Workplace Performance," NBER Working Papers 14230, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  2. Mónica Melle, 2005. "¿Cómo valora el mercado de valores español la adopción de planes de opciones sobre acciones para directivos y consejeros?," Investigaciones Economicas, Fundación SEPI, vol. 29(1), pages 73-115, January. [Downloadable!]
  3. David Marsden, 2004. "The Network Economy and Models of the Employment Contract: Psychological, Economic and Legal," CEP Discussion Papers dp0620, Centre for Economic Performance, LSE. [Downloadable!]
  4. Benjamin Campbell, 2003. "Local Labor Market Conditions and Stock Options Incidence: A Study of the Information Technology Sector," Institute for Research on Labor and Employment, Working Paper Series 1094, Institute of Industrial Relations, UC Berkeley. [Downloadable!]
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This page was last updated on 2009-11-28.


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