How do managers behave in stock option plans? Clinical evidence from exercise and survey data

Sautner, Zacharias ; Weber, Martin

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Document Type: Article
Year of publication: 2009
The title of a journal, publication series: The Journal of Financial Research
Volume: 32
Issue number: 2
Page range: 123-155
Place of publication: Oxford [u.a.]
Publishing house: Wiley-Blackwell
ISSN: 0270-2592 , 1475-6803
Publication language: English
Institution: Außerfakultäre Einrichtungen > Graduate School of Economic and Social Sciences - CDSB (Business Studies)
Business School > ABWL u. Finanzwirtschaft, insbes. Bankbetriebslehre (Weber 1993-2017)
Subject: 330 Economics
Classification: JEL: M41 , M52 , M55 , G39,
Keywords (English): Employee Stock Options , Exercise Behavior , Stock Selling Behavior
Abstract: We use unique data to empirically analyse the behavior of senior managers in a distinct stock option plan. Combining individual-level exercise data with very detailed questionnaire data, we study how these managers exercise their stock options. Moreover, we investigate which rational and behavioral factors explain differences in the observed exercise behavior. We find that individuals exercise options very early and in a few large transactions. Risk aversion and holdings of company stock cannot explain the exercise behavior in our data. We provide interesting and new results that suggest that exercise decisions depend on the psychological factors miscalibration and mental accounting.

Dieser Eintrag ist Teil der Universitätsbibliographie.

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