Exercises of Executive Stock Options on the Vesting Date |
| |
Authors: | Xudong Fu James A Ligon |
| |
Institution: | Xudong Fu is an Assistant Professor of Finance at Southern Illinois University Edwardsville in Edwardsville, IL. |
| |
Abstract: | We investigate the motives for executives to exercise executive stock options on the options’ vesting date versus a later early exercise. We find that executives frequently exercise on the vesting date, executives with a greater need for portfolio diversification and riskier underlying stocks are more likely to exercise their options on the vesting date versus a later early exercise, and private information appears less relevant to vesting date exercises. |
| |
Keywords: | |
|
|