Non-executive employee stock options and corporate innovation
We provide empirical evidence on the positive effect of non-executive employee stock options on corporate innovation. The positive effect is more pronounced when employees are more important for innovation, when free-riding among employees is weaker, when options are granted broadly to most employee...
| Main Authors: | , , , |
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| Other Authors: | |
| Format: | Journal Article |
| Language: | English |
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2015
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| Online Access: | https://hdl.handle.net/10356/106701 http://hdl.handle.net/10220/25040 |
| _version_ | 1811695392548454400 |
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| author | Chang, Xin Fu, Kangkang Low, Angie Zhang, Wenrui |
| author2 | Nanyang Business School |
| author_facet | Nanyang Business School Chang, Xin Fu, Kangkang Low, Angie Zhang, Wenrui |
| author_sort | Chang, Xin |
| collection | NTU |
| description | We provide empirical evidence on the positive effect of non-executive employee stock options on corporate innovation. The positive effect is more pronounced when employees are more important for innovation, when free-riding among employees is weaker, when options are granted broadly to most employees, when the average expiration period of options is longer, and when employee stock ownership is lower. Further analysis reveals that employee stock options foster innovation mainly through the risk-taking incentive, rather than the performance-based incentive created by stock options. |
| first_indexed | 2024-10-01T07:22:45Z |
| format | Journal Article |
| id | ntu-10356/106701 |
| institution | Nanyang Technological University |
| language | English |
| last_indexed | 2024-10-01T07:22:45Z |
| publishDate | 2015 |
| record_format | dspace |
| spelling | ntu-10356/1067012023-05-19T06:44:41Z Non-executive employee stock options and corporate innovation Chang, Xin Fu, Kangkang Low, Angie Zhang, Wenrui Nanyang Business School DRNTU::Business::Finance We provide empirical evidence on the positive effect of non-executive employee stock options on corporate innovation. The positive effect is more pronounced when employees are more important for innovation, when free-riding among employees is weaker, when options are granted broadly to most employees, when the average expiration period of options is longer, and when employee stock ownership is lower. Further analysis reveals that employee stock options foster innovation mainly through the risk-taking incentive, rather than the performance-based incentive created by stock options. Accepted version 2015-02-12T07:03:34Z 2019-12-06T22:16:29Z 2015-02-12T07:03:34Z 2019-12-06T22:16:29Z 2014 2014 Journal Article Chang, X., Fu, K., Low, A., & Zhang, W. (2015). Non-executive employee stock options and corporate innovation. Journal of financial economics, 115(1), 168-188. 0304-405X https://hdl.handle.net/10356/106701 http://hdl.handle.net/10220/25040 10.1016/j.jfineco.2014.09.002 en Journal of financial economics © 2014 Elsevier B.V. This is the author created version of a work that has been peer reviewed and accepted for publication by Journal of Financial Economics, Elsevier B.V. It incorporates referee’s comments but changes resulting from the publishing process, such as copyediting, structural formatting, may not be reflected in this document. The published version is available at: [Article DOI: http://dx.doi.org/10.1016/j.jfineco.2014.09.002]. 21 p. application/msword |
| spellingShingle | DRNTU::Business::Finance Chang, Xin Fu, Kangkang Low, Angie Zhang, Wenrui Non-executive employee stock options and corporate innovation |
| title | Non-executive employee stock options and corporate innovation |
| title_full | Non-executive employee stock options and corporate innovation |
| title_fullStr | Non-executive employee stock options and corporate innovation |
| title_full_unstemmed | Non-executive employee stock options and corporate innovation |
| title_short | Non-executive employee stock options and corporate innovation |
| title_sort | non executive employee stock options and corporate innovation |
| topic | DRNTU::Business::Finance |
| url | https://hdl.handle.net/10356/106701 http://hdl.handle.net/10220/25040 |
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