search query: @author Corrado, C. J. (et al.) / total: 1
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| Author: | Corrado, C. J. (et al.) |
| Title: | Repricing and employee stock option valuation |
| Journal: | Journal of Banking and Finance
2001 : JUN, VOL. 25:6, p. 1059-1082 |
| Index terms: | Share incentive schemes Employee motivation Option valuation Financial models |
| Freeterms: | Repricing Early exercise |
| Language: | eng |
| Abstract: | a repricing occurs when the issueing firm resets the strike price of an employee stock option (ESO). The authors develop a new model for valuing ESOs with a repricing feature. Their valuation model is developed within a utility -maximizing framework that accounts for potentially multiple repricings, employee risk aversion, employee non-option wealth, the non-tardeability of ESOs, and the early exercise feature of ESOs. Simulations suggest that these factors can significantly affect ESO value. |
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