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Real Investment Implications of Employee Stock Option Exercises


  • Daniel A. Bens


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  • Daniel A. Bens, 2002. "Real Investment Implications of Employee Stock Option Exercises," Journal of Accounting Research, Wiley Blackwell, vol. 40(2), pages 359-393, May.
  • Handle: RePEc:bla:joares:v:40:y:2002:i:2:p:359-393

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    References listed on IDEAS

    1. Constantinides, George M., 1984. "Optimal stock trading with personal taxes : Implications for prices and the abnormal January returns," Journal of Financial Economics, Elsevier, vol. 13(1), pages 65-89, March.
    2. William A. Reese, Jr., 1998. "Capital Gains Taxation and Stock Market Activity: Evidence from IPOs," Journal of Finance, American Finance Association, vol. 53(5), pages 1799-1819, October.
    3. Stiglitz, Joseph E., 1983. "Some aspects of the taxation of capital gains," Journal of Public Economics, Elsevier, vol. 21(2), pages 257-294, July.
    4. Klein, Peter, 1999. "The capital gain lock-in effect and equilibrium returns," Journal of Public Economics, Elsevier, vol. 71(3), pages 355-378, March.
    5. James M. Poterba, 2001. "Capital Gains Tax Rules, Tax-loss Trading, and Turn-of-the-year Returns," Journal of Finance, American Finance Association, vol. 56(1), pages 353-368, February.
    6. Constantinides, George M, 1983. "Capital Market Equilibrium with Personal Tax," Econometrica, Econometric Society, vol. 51(3), pages 611-636, May.
    7. Poterba, James M., 1987. "How burdensome are capital gains taxes?: Evidence from the United States," Journal of Public Economics, Elsevier, vol. 33(2), pages 157-172, July.
    8. Ritter, Jay R, 1988. " The Buying and Selling Behavior of Individual Investors at the Turn of the Year," Journal of Finance, American Finance Association, vol. 43(3), pages 701-717, July.
    9. Balcer, Yves & Judd, Kenneth L, 1987. " Effects of Capital Gains Taxation on Life-Cycle Investment and Portfolio Management," Journal of Finance, American Finance Association, vol. 42(3), pages 743-758, July.
    10. Cutler, David M, 1988. "Tax Reform and the Stock Market: An Asset Price Approach," American Economic Review, American Economic Association, vol. 78(5), pages 1107-1117, December.
    11. Guenther, David A. & Willenborg, Michael, 1999. "Capital gains tax rates and the cost of capital for small business: evidence from the IPO market," Journal of Financial Economics, Elsevier, vol. 53(3), pages 385-408, September.
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    Cited by:

    1. Lin, Hsuan-Chu & Chou, Ting-Kai & Wang, Wen-Gine, 2012. "Capital structure and executive compensation contract design: A theoretical and empirical analysis," Journal of Banking & Finance, Elsevier, vol. 36(1), pages 209-224.
    2. Sondes Draief & Adel Chouaya, 2012. "Effet de la gestion comptable et réelle des résultats sur le coût de la dette : analyse avant et après SOX," Post-Print hal-00691020, HAL.
    3. Bill Francis & Iftekhar Hasan & Lingxiang Li, 2016. "Abnormal real operations, real earnings management, and subsequent crashes in stock prices," Review of Quantitative Finance and Accounting, Springer, vol. 46(2), pages 217-260, February.
    4. Roychowdhury, Sugata, 2006. "Earnings management through real activities manipulation," Journal of Accounting and Economics, Elsevier, vol. 42(3), pages 335-370, December.
    5. Weston, J. Fred & Siu, Juan A., 2003. "Changing Motives for Share Repurchases," University of California at Los Angeles, Anderson Graduate School of Management qt9146588t, Anderson Graduate School of Management, UCLA.
    6. Nemit Shroff, 2017. "Corporate investment and changes in GAAP," Review of Accounting Studies, Springer, vol. 22(1), pages 1-63, March.
    7. Samah Rebai Azouz, 2011. "Les motivations de l'inscription des investissements en R&D à l'actif : Divulgation volontaire d'informations ou gestion des résultats ?," Post-Print hal-00650564, HAL.
    8. Larcker, David F., 2003. "Discussion of "employee stock options, EPS dilution, and stock repurchases"," Journal of Accounting and Economics, Elsevier, vol. 36(1-3), pages 45-49, December.
    9. Jennifer Martínez-Ferrero, 2014. "Consequences of financial reporting quality on corporate performance. Evidence at the international level," Estudios de Economia, University of Chile, Department of Economics, vol. 41(1 Year 20), pages 49-88, June.
    10. Sheng-Syan Chen & Yan-Shing Chen & Yanzhi Wang, 2015. "Does Labor Power Affect the Likelihood of a Share Repurchase?," Financial Management, Financial Management Association International, vol. 44(3), pages 623-653, September.
    11. Wei Zhang & Steven F. Cahan, 2010. "Nonrecurring Accounting Transactions and Stock Option Grants," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 37(1-2), pages 93-129.
    12. Gunnar Bårdsen & Jurgen Doornik & Jan Tore Klovland, 2004. "A European-type wage equation from an American-style labor market: Evidence from a panel of Norwegian manufacturing industries in the 1930s," Working Paper 2004/4, Norges Bank.
    13. Elnahas, Ahmed M. & Kabir Hassan, M. & Ismail, Ghada M., 2017. "Religion and mergers and acquisitions contracting: The case of earnout agreements," Journal of Corporate Finance, Elsevier, vol. 42(C), pages 221-246.
    14. Ching-Lung Chen & Pin-Yu Lin & Pei-Yu Weng, 2014. "Real Activities Manipulation and Subsequent Accounting Performance ---Yes, the Manipulating Direction Matters," Review of Economics & Finance, Better Advances Press, Canada, vol. 4, pages 81-97, Feburary.
    15. Banyi, Monica L. & Dyl, Edward A. & Kahle, Kathleen M., 2008. "Errors in estimating share repurchases," Journal of Corporate Finance, Elsevier, vol. 14(4), pages 460-474, September.
    16. Farooqi, Javeria & Harris, Oneil & Ngo, Thanh, 2014. "Corporate diversification, real activities manipulation, and firm value," Journal of Multinational Financial Management, Elsevier, vol. 27(C), pages 130-151.
    17. Nagar, Neerav & Sen, Kaustav, 2016. "Earnings Management Strategies during Financial Distress," IIMA Working Papers WP2016-02-03, Indian Institute of Management Ahmedabad, Research and Publication Department.
    18. Michel Albouy & Tania Morris, 2006. "Les rachats d’actions au Canada:motivations et impact de l’activité économique," Revue Finance Contrôle Stratégie,, vol. 9(4), pages 5-32, December.
    19. Johannes A. Skjeltorp & Bernt Arne Ødegaard, 2004. "The ownership structure of repurchasing firms," Working Paper 2004/7, Norges Bank.
    20. Asjeet S. Lamba & Vivek M. Miranda, 2010. "The Role of Executive Stock Options in On-Market Share Buybacks-super-," International Review of Finance, International Review of Finance Ltd., vol. 10(3), pages 339-363.
    21. Hanlon, Michelle & Rajgopal, Shivaram & Shevlin, Terry, 2003. "Are executive stock options associated with future earnings?," Journal of Accounting and Economics, Elsevier, vol. 36(1-3), pages 3-43, December.
    22. Alok Bhargava, 2013. "Executive compensation, share repurchases and investment expenditures: econometric evidence from US firms," Review of Quantitative Finance and Accounting, Springer, vol. 40(3), pages 403-422, April.
    23. Nagar, Neerav & Radhakrishnan, Suresh, 2015. "Firm Life Cycle and Real-Activity Based Earnings Management," IIMA Working Papers WP2015-12-01, Indian Institute of Management Ahmedabad, Research and Publication Department.
    24. Bens, Daniel A. & Nagar, Venky & Skinner, Douglas J. & Wong, M. H. Franco, 2003. "Employee stock options, EPS dilution, and stock repurchases," Journal of Accounting and Economics, Elsevier, vol. 36(1-3), pages 51-90, December.

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