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Broad-based employee stock options in US 'new economy' firms.

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Article

Sesil, James C. ; Kroumova, Maya K. ; Blasi, Joseph R. ; Kruse, Douglas L.

British Journal of Industrial Relations

2002

40

2

June

273-294

computer industry ; high technology industry ; service sector ; statistics ; workers stock ownership

USA

Wages and wage payment systems

English

Bibliogr.

"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."

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