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How (And Why) Companies Should Value Their Employee Stock Options

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  • Craig McCann

Abstract

Companies incur costs whenever they deliver something of value to another party, and not just when cash changes hands… If options aren't a form of compensation, what are they? If compensation isn't an expense, what is it? And, if expenses shouldn't go into the calculation of earnings, where in the world should they go?

Suggested Citation

  • Craig McCann, 1994. "How (And Why) Companies Should Value Their Employee Stock Options," Journal of Applied Corporate Finance, Morgan Stanley, vol. 7(2), pages 91-99, June.
  • Handle: RePEc:bla:jacrfn:v:7:y:1994:i:2:p:91-99
    DOI: 10.1111/j.1745-6622.1994.tb00409.x
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    Cited by:

    1. Brian A. Maris & Jo‐Mae Maris & Tyler T. Yang, 2003. "The Effect of Exercise Date Uncertainty on Employee Stock Option Value," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 30(5‐6), pages 669-698, June.

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