EconStor >
Research Institute of the Finnish Economy (ETLA), Helsinki >
ETLA Discussion Papers, Research Institute of the Finnish Economy >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/63877
  
Title:Do stock option schemes affect firm technical inefficiency? Evidence from Finland PDF Logo
Authors:Mäkinen, Mikko
Issue Date:2007
Series/Report no.:ETLA Discussion Papers, The Research Institute of the Finnish Economy (ETLA) 1085
Abstract:In this paper we study whether stock option schemes affect firm technical inefficiency. We estimate Cobb-Douglas stochastic production frontier models using a novel panel data set on the publicly listed Finnish firms in the manufacturing and ICT sectors over the period from 1992 to 2002. We find evidence that the mean inefficiency estimates in the ICT sector are clearly higher than in the manufacturing sector. Furthermore, our empirical findings suggest that broad-based option firms may have higher mean inefficiency than selective and non-option firms in the manufacturing sector. The quantitative assessments of the marginal effects on the inefficiency support the view that especially broad-based schemes affect the mean and the variance of the inefficiency term uit in the manufacturing sector, but not in the ICT sector. Our findings do not provide empirical support for the view that stock option schemes reduce firm technical
JEL:C3
J3
M5
Document Type:Working Paper
Appears in Collections:ETLA Discussion Papers, Research Institute of the Finnish Economy

Files in This Item:
File Description SizeFormat
526670975.pdf132.3 kBAdobe PDF
No. of Downloads: Counter Stats
Download bibliographical data as: BibTeX
Share on:http://hdl.handle.net/10419/63877

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.