Why do employees hold their vested stocks while they can sell them?
Journal
International Journal of Human Resource Management
Journal Volume
20
Journal Issue
1
Pages
148-163
Date Issued
2009
Author(s)
Abstract
We proposed an integrated model of risk-balancing arguments and the emergence of psychological ownership to investigate employees' propensity of holding awarded stocks under a broad-based stock incentive plan. Analysis was conducted using a sample of 391 employees of a semiconductor foundry located in Taiwan. The results provided strong indication that psychological ownership motivation contribute to explain employees' willingness to hold vested stocks from broad-based stock plans. This study provide stimulating insight into the psychological mechanisms through which the individual's risk-aversion and wealth effects influence employees' intentions to hold vested stocks and further extends our understanding on how broad-based stock plans can develop an employees sense of ownership.
Type
journal article