Market Valuation and Employee Stock Grants
Date Issued
2005
Date
2005
Author(s)
Kao, Pei-jing
DOI
en-US
Abstract
This thesis investigates a market-valuation-based hypothesis for employee stock grant. It examines how market valuation has affected the decision to grant employee stocks, the amount of stocks granted, and the value of stocks granted. It also examines the distribution of stocks among executives and rank-and-file employees and the influence that professional investors might have on employee stock grant decision.
The empirical evidence shows that firms with high market valuation are more likely to adopt employee stock grants and grant more stocks to their employees. Furthermore, top executives tend to grant a larger portion of stocks to themselves relative to rank-and-file employees when they perceive the current market valuation is high. Under th monitoring of professional investors, the possibility of adopting employee stock grant is diminished. This thesis also support that employee stock grant can be used as a method to sell overvalued equity.
Subjects
員工股票紅利
市場評價
Employee Stock Grant
Market Valuation
Overvalued Equity
Type
other
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