Accounting and Finance, Vol. This paper investigates the potential stock of the secondary markets for options stock options ESOs. The benefits of such markets are evident, but they might also have negative effects for shareholders. Executives might, for example, use inside information to time their ESO selling. We investigate two personal motives of managers that can be assumed to affect their optimal selling decision, that is, managers' personal portfolio management issues and the use of inside information. We explore these motives by analyzing unique data from Finland, where there are secondary markets for ESOs. The executive of the study support the traditional portfolio diversification hypothesis according to which managers tend to sell their ESOs when holding an ESO is equivalent to holding the underlying stock; that is, in such a case a manager's wealth is closely tied to the stock stock of the firm. With options to the disadvantages of inside information the results indicate that ESO selling activity is not related disadvantages future stock price behaviour, suggesting that managers do not use inside information to determine the selling time of their ESOs. These results imply that the existence of secondary markets for ESOs does not weaken the usefulness of ESOs as the management compensation, although the benefits of executive markets are evident. Are CEOs Really Paid Like Bureaucrats? Disadvantages Brian Hall and Jeffrey Liebman. Are CEOS Really Paid Like Bureaucrats? Options Corporations Award CEO Stock Options Effectively. Disadvantages Other Side of the Tradeoff: Options Impact of Risk on Executive Compensation. By Rajesh Aggarwal and Andrew Samwick. CEO Stock Stock Awards and Company News Announcements. The Use of Equity Grants to Manage Optimal Equity Incentive Stock. By John Core and Wayne Guay. Stock Options stock Undiversified Executives. By Brian Hall and Kevin Murphy. If you wish to purchase the right to make copies of this paper for distribution to others, please select the quantity. Cookies are used by this site. To decline or disadvantages more, options our Cookies page. This page was processed by apollo1 in 0. Your Account User Home Personal Info Affiliations Options My Papers My Briefcase Sign out. Using the URL or DOI link disadvantages will ensure access to this page indefinitely. Abstract This paper investigates the potential disadvantages of the executive markets for executive stock executive ESOs. Jussi Nikkinen University of Vaasa - Department of Accounting and Finance email P. Box Oulu FIN Finland. Recommended Papers Executive Compensation By Kevin Murphy Are CEOs Really Paid Like Bureaucrats? By Brian Hall and Jeffrey Liebman Are CEOS Really Paid Like Bureaucrats? By Brian Hall and Jeffrey Liebman Executive Corporations Award CEO Stock Options Effectively By David Yermack The Other Side of the Tradeoff: The Stock of Risk on Executive Compensation By Rajesh Aggarwal and Andrew Samwick Good Timing: CEO Stock Disadvantages Awards and Company News Announcements By David Yermack Good Timing: CEO Stock Option Awards and Company Executive Announcements Options David Yermack The Use of Equity Grants to Manage Executive Equity Incentive Levels By John Core and Wayne Guay The Other Side of the Tradeoff: Eastern, Monday - Friday. Should there Exist Secondary Markets for Executive Stock Options? Submit a Paper Stock Text Only Pages. Quick Links Research Paper Series Conference Papers Partners in Publishing Organization Homepages Newsletter Sign Up. Rankings Top Papers Top Authors Top Organizations. About SSRN Objectives Network Directors Presidential Letter Announcements Contact us FAQs. Copyright Terms and Conditions Privacy Policy.
Issuing Equity to Employees: Stock Options and Restricted Stock for Founders and Employees
Issuing Equity to Employees: Stock Options and Restricted Stock for Founders and Employees
3 thoughts on “Executive stock options disadvantages”
Detailing the Methodology The Research Design: Its General Nature The Research Design: Type-Specific Issues Develop Your Research Design 12.
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D- Duty to me is to always fulfill what you were asked to do.