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Broad-based Employee Stock Options in the U.S.Company Performance and Characteristics

Author

Listed:
  • James C. Sesil

    () (Rutgers University)

  • Maya K. Kroumova

    () (New York Institute of Technology)

  • Douglas L. Kruse

    () (Rutgers University)

  • Joseph R. Blasi

    (Rutgers University)

Abstract

This paper analyses data on 490 companies with broad-based stock option plans, matched to data from CompuStat in order to compare their characteristics and performance to that of other public companies. Major findings are that 1) companies with broad-based plans have higher levels of labor productivity, employment growth, and sales growth than otherwise-similar firms; 2) productivity and profitability levels rise as broad-based plans are adopted, and 3) average compensation levels are higher among such companies both before and after the introduction of broad-based plans, indicating that stock options appear to come on top of other compensation.

Suggested Citation

  • James C. Sesil & Maya K. Kroumova & Douglas L. Kruse & Joseph R. Blasi, 2007. "Broad-based Employee Stock Options in the U.S.Company Performance and Characteristics," management revue. Socio-economic Studies, Rainer Hampp Verlag, vol. 18(1), pages 5-22.
  • Handle: RePEc:rai:mamere:doi_10.1688/1861-9908_mrev_2007_01_sesil
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    Cited by:

    1. repec:wsi:rpbfmp:v:20:y:2017:i:02:n:s0219091517500126 is not listed on IDEAS
    2. Avshalom Adam & Mark Schwartz, 2009. "Corporate Governance, Ethics, and the Backdating of Stock Options," Journal of Business Ethics, Springer, vol. 85(1), pages 225-237, February.
    3. Hanen Maalej & Mohamed Triki, 2008. "Déterminants de la pratique de l'actionnariat salarié dans les entreprises françaises," Post-Print halshs-00525419, HAL.
    4. Kim, Kyoung Yong & Patel, Pankaj C., 2017. "Employee ownership and firm performance: A variance decomposition analysis of European firms," Journal of Business Research, Elsevier, vol. 70(C), pages 248-254.
    5. Christina E. Bannier & Sabrina Zahn, 2014. "SMEs' Growth Heterogeneity - Evidence from Regional Developments," International Journal of Business Administration, International Journal of Business Administration, Sciedu Press, vol. 5(2), pages 23-49, March.

    More about this item

    Keywords

    Broad-based Stock Options; Firm Performance; Wage Effect;

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • J53 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Labor-Management Relations; Industrial Jurisprudence
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General

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