Broad-based Employee Stock Options in US 'New Economy' Firms |
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Authors: | James C Sesil Maya K Kroumova Joseph R Blasi & Douglas L Kruse |
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Institution: | Rutgers University,;New York Institute of Technology |
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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. |
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