IDEAS home Printed from https://ideas.repec.org/a/mes/emfitr/v48y2012i0p110-132.html
   My bibliography  Save this article

Do Market Participants Favor Employee Stock Option Schemes? Evidence from Taiwan

Author

Listed:
  • Chia-Ying Chan
  • Vivian W. Tai
  • Kuo-An Li
  • Ranko Jelic

Abstract

Since their inception in 2000, employee stock options (ESOs) in Taiwan have grown in popularity and captivated market stakeholders. Previous studies have explored how ESOs serve as an incentive to stimulate both employees and management, and hence lead to better performance. If this is true, then positive market reactions toward ESO approval/issue dates and long-run market/operating performance are expected. While our empirical results confirm the short- and long-run stimulation effects and effectiveness of ESOs, we observe that a manipulation effect may also exist in terms of how the ESO strike price is determined prior to their issue date.

Suggested Citation

  • Chia-Ying Chan & Vivian W. Tai & Kuo-An Li & Ranko Jelic, 2012. "Do Market Participants Favor Employee Stock Option Schemes? Evidence from Taiwan," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 48(0), pages 110-132, January.
    • Handle: RePEc:mes:emfitr:v:48:y:2012:i:0:p:110-132
    as

    Download full text from publisher

    File URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=K375274412U57432
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Atilgan, Yigit & Demirtas, K. Ozgur & Simsek, Koray D., 2016. "Derivative markets in emerging economies: A survey," International Review of Economics & Finance, Elsevier, vol. 42(C), pages 88-102.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mes:emfitr:v:48:y:2012:i:0:p:110-132. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/MREE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.