A Study on the Relationship between Executive Stock Option value and Company Performances-The Empirical Study of Taiwan Listed Electronic Companies

• Main Authors: Yu-Fang Yen, 顏鈺芳
• Other Authors: Yen-Shin Cheng
• Format: Others
• Language: zh-TW
• Published: 2007
• Online Access: http://ndltd.ncl.edu.tw/handle/49783789760854427173

碩士 === 國立高雄應用科技大學 === 金融資訊研究所 === 95 === This research adopted the Cobb-Douglas function to measure the relationship between Executive Stock Option and Firms’ productivity. Our samples include those listed electronic firms that have issued at lest once from 2001 to 2005. Besides, we utilize both Black-Scholes Model and Binomial Option Pricing Model to evaluate the value of Executive Stock Option, in order to see whether the different valuation model would affect the empirical result. We first use the cross sectional data of year 2005 to discover the influence of Executive Stock Option system. Then a complete panel data is investigated to understand more clearly how timing effect this system has on firms’ productivity. The paper finds that the adoption of employee stock option indeed has positive impact on the company’s productivity. However, this positive effect realizes with a lag period of 3 years because of the 2 years vesting period which means that employees have to wait for 2 years before he/she is allowed to execute the stock option. Overall our finding indicates that Executive Stock Option do have positive, yet delayed influence on a company’s productivity.