Payout Policy and Employee Share Options

• Autorzy: Wojciech Grabowski
• Języki publikacji: EN

Abstrakty

EN

Here are the major hypotheses on the repurchase-options relationship put forward and tested in empirical research, together with their brief description and paper references:
- the substitution/managerial wealth hypothesis (option-influenced preference for repurchases over dividends; Kahle, 2002; Liljeblom and Pasternack, 2003);
- agency hypothesis (option-induced earnings retention and payout adjustments; Weisbenner, 2000);
- undo-dilution hypothesis (repurchases are related to dilutive characteristics of option plans (Weisbenner, 2000; Kahle, 2002; Bens et al., 2003; Lee and Alam, 2004);
- option-funding hypothesis (repurchasing shares for reissue in option exercise; Kahle, 2002; Lee and Alam, 2004);
- EPS management hypothesis (options influence managers to manage EPS to meet certain targets; Bens et al., 2003). (fragment of text)

Słowa kluczowe

EN

Eployee stock ownership system; Employee share ownership; Literature review

PL

System Pracowniczej Własności Udziałów (ESOP); Akcjonariat pracowniczy; Przegląd literatury

• Czasopismo: Ekonomia / Uniwersytet Warszawski
• Rocznik: 2005
• Numer: nr 17
• Strony: 166--173

Twórcy

autor

Wojciech Grabowski

• University of Warsaw, Poland

Bibliografia

• Bens D.A., V Nagar. D. J. Skinner. M.H. Franco Wong. 2003. "Employee stock options, EPS dilution, and stock repurchases". Journal of Accounting and Economics 36, 51-90.
• Brav A., J. R. Graham, C. R. Harvey, R. Michaely. 2005. Payout policy in the 21st century. Working paper, available at SSRN.
• Core J., W. Guay, S. Kothari 2002. "The economic dilution of Employee Stock Options: diluted EPS for valuation and financial reporting". The Accounting Review 77, 627-652.
• Fenn G., N. Liang. 2001. "Corporate payout policy and managerial stock incentives". Journal of Financial Economics 60,45-72.
• Kahle K. M. 2002. "When a buyback isn't a buyback: open market repurchases and employee options". Journal of Financial Economics 63. 235-261.
• Larcker D. F. 2003. "A discussion of "employee stock options, EPS dilution, and stock repurchases". Journal of Accounting and Economics 36, 45-49.
• Lee C.-H., P. Alam. 2004. "Stock option measures and the stock repurchase decision". Review of Accounting and Finance 23, 329-352.
• Liljeblom E., D. Pasternack. 2002. Share repurchases, dividends and executive options; empirical evidence from Finland. Swedish School of Economics and Business Administration, working paper, available at SSRN.
• Weisbenner S.J. 2000. Corporate share repurchases in the 1990s: What role do stock options play? FEDS working paper No. 2000-29, available at SSRN.