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This dissertation analyzes the reliability of reported employee stock option (ESO) expense, the determination of expected life of ESOs, motivations to manipulate ESO expense, and the impact of noise in

This dissertation analyzes the reliability of reported employee stock option (ESO) expense, the determination of expected life of ESOs, motivations to manipulate ESO expense, and the impact of noise in ESO expense on subsequent stock price returns. Based on unique data, this is the first paper to measure average historical ESO life for all employees of a broad set of firms. I find average life has a mean of 4.12 years. Average life is reduced by 0.38 years per 10 percentage point increase in volatility, and industry effects explain an additional 7% of the variation.

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    Date Created
    • 2011
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  • Text
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    • Partial requirement for: Ph. D., Arizona State University, 2011
      Note type
      thesis
    • Includes bibliographical references (p. 50-51)
      Note type
      bibliography
    • Field of study: Business administration

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    by Brian Young

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