Accounting for employee stock options: What can we learn from the market's perceptions?

• Published in: IDEAS Working Paper Series from RePEc
• Main Authors: Bagna, Emanuel, Bini, Mauro, Bird, Ron, Momentè, Francesco, Reggiani, Francesco
• Format: Paper
• Language: English
• Published: St. Louis Federal Reserve Bank of St. Louis 01.01.2010
• Subjects: Compensation; Deferred compensation; Liability; Stock options

The scope of this is paper is to provide new empirical evidence on the value relevance of employee stock options (ESOs) in Europe. We show, empirically, that the market participants when pricing a firm's equity place approximately the same valuation weights on the ESO-deferred compensation expe...