| ID | 077189 |
| Title Proper | Incentive and Dilution Effects of Employee Stock Bonuses and Stock Options |
| Other Title Information | Evidence from Taiwan |
| Language | ENG |
| Author | Chen, Miao-Ling |
| Publication | 2007. |
| Summary / Abstract (Note) | Employee stock bonuses (ESBs) and employee stock options (ESOs) are the means for high-technology companies in Taiwan to reward their employees. This research connects the Ohlson (1995) model and Linear Structural Relations (LISREL) model to investigate these effects of ESBs and ESOs, respectively, for a sample of high-technology companies in Taiwan. I generate two empirical generalizations. (1) The incentive effects of ESBs are significantly associated with performance, thus enhancing firm value; in addition, the incentive effects of ESBs are greater than the dilution effects. (2) The incentive effects of ESOs are also significantly associated with performance, whereas the dilution effects of ESOs are insignificant. Although evidence supports the incentive effects of providing ESOs and ESBs, it is debatable whether ESOs and ESBs dilute shareholders' equity |
| `In' analytical Note | Journal of Chinese Econonics and Business Studies Vol. 5, No.1; Feb 2007: p65-73 |
| Journal Source | Journal of Chinese Econonics and Business Studies Vol. 5, No.1; Feb 2007: p65-73 |
| Key Words | Employee Stock Bonuses ; Employee Stock Options ; Black-Scholes Model ; Valuation |