TY - UNPD A1 - Raupach, Peter T1 - The valuation of employee stock options : how good is the standard? T2 - Universität Frankfurt am Main. Fachbereich Wirtschaftswissenschaften: [Working paper series / Finance and accounting] Working paper series, Finance & Accounting ; No. 122 N2 - This study contributes to the valuation of employee stock options (ESO) in two ways: First, a new pricing model is presented, admitting a major part of calculations to be solved in closed form. Designed with a focus on good replication of empirics, the model fits with publicly observable exercise characteristics better than earlier models. In particular, it is able to account for the correlation of the time of exercise and the stock price at exercise, suspected of being crucial for the option value. The impact of correlation is weak, however, whereas cancellations play a central role. The second contribution of this paper is an examination to what extent the ESO pricing method of SFAS 123 is subject to discretion of the accountant. Given my model were true, the SFAS price would be a good proxy. Yet, outside shareholders usually cannot observe one of the SFAS input parameters. On behalf of an example I show that there is wide latitude left to the accountant. T3 - Working paper series / Johann-Wolfgang-Goethe-Universität Frankfurt am Main, Fachbereich Wirtschaftswissenschaften : Finance & Accounting - 122 KW - Employee stock options KW - Executive stock options KW - Barrier options KW - Exercise Behavior KW - Fair value accounting KW - Festwert KW - Teilwert KW - Neubewertung KW - Bewertungseinheit KW - Optionspreistheorie KW - International Financial Reporting Standards KW - International Accounting Standards KW - Aktienoption KW - Aktienoptionshandel KW - Aktienoptionsplan Y1 - 2003 UR - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/3709 UR - https://nbn-resolving.org/urn:nbn:de:hebis:30-17787 N1 - December 21, 2003 (first draft: January 24, 2003) IS - December 21, 2003 PB - Univ., Fachbereich Wirtschaftswiss. CY - Frankfurt am Main ER -