EMPLOYEE STOCK OPTION EXERCISES - AN INTERNATIONAL ANALYSIS

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Abstract

In this paper we use a proprietary data set that consists of all stock option grants and exercises for a Fortune 100 multinational corporations from 1990 to 1999 to show that the exercise patterns of employees varies across countries. When we examine the variables overall exercise responds to we find evidence that the variables vary with culture, e.g., in general patterns in English speaking countries appear to be comparable, but not so for other countries. When we examine variables that determine the length of time an individual option is held before exercise, we also find it also varies across countries. Further analysis indicates that these differences are tied to systematic differences in national income and tax rates.

Keywords: Stock Options, Employees, Tax Rates

How to cite this paper: Balsam, S., & Gifford, R. (2006). Employee stock option exercises - an international analysis. Corporate Ownership & Control, 3(3), 49-54. https://doi.org/10.22495/cocv3i3p4