Broad-based Employee Stock Options in US 'New Economy' Firms

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...

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Bibliographic Details
Published inBritish journal of industrial relations Vol. 40; no. 2; pp. 273 - 294
Main Authors Sesil, James C., Kroumova, Maya K., Blasi, Joseph R., Kruse, Douglas L.
Format Journal Article
LanguageEnglish
Published Oxford, UK and Boston, USA Blackwell Publishers Ltd 01.06.2002
Blackwell Publishing Ltd
Subjects
Comparative analysis
Economic performance
Employee stock ownership plans
Employees
Enterprises
ESOP
Financial performance
Labour relations
Options on stocks
R&D
Research & development
Stock options
Studies
U.S.A
United States > US
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Summary: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.
Bibliography:istex:6E2A1FEDEC19B4F292C68D164038963FB3557979
ArticleID:BJIR232
ark:/67375/WNG-BH5GBTW0-G
ObjectType-Article-2
SourceType-Scholarly Journals-1
ObjectType-Feature-1
content type line 23
ISSN:0007-1080
1467-8543
DOI:10.1111/1467-8543.00232