Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/55990 
Year of Publication: 
2002
Citation: 
[Journal:] Journal of Entrepreneurial Finance, JEF [ISSN:] 1551-9570 [Volume:] 7 [Issue:] 2 [Publisher:] The Academy of Entrepreneurial Finance (AEF) [Place:] Montrose, CA [Year:] 2002 [Pages:] 83-103
Publisher: 
The Academy of Entrepreneurial Finance (AEF), Montrose, CA
Abstract: 
As of 1998, nine percent of the shares of all firms in the US, primarily young and small ones, have been owned, essentially by about 17 million employees. The recent trend of new ventures to grant company-wide stock options plans is an alignment of the interests of management, shareholders, and non-managerial employees. This paper empirically explores the hypothesis that company-wide stock options plans primarily serve the interests of the firm.s management. This is true, whether or not, management owns a stake in the firm.s equity, though the degree of his or her motivation varies depending on the size of his/her stake in the firm.s equity. The paper unambiguously disproves the view that grants of employee stock options are meant to ease cash flow strains for small young firms.
Document Type: 
Article

Files in This Item:
File
Size
509.01 kB





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