TY  - UNPD
A1  - Raupach, Peter
T1  - The cost of employee stock options
T2  - Universität Frankfurt am Main. Fachbereich Wirtschaftswissenschaften: [Working paper series / Finance and accounting] Working paper series, Finance & Accounting ; No. 123
N2  - This paper determines the cost of employee stock options (ESOs) to shareholders. I present a pricing method that seeks to replicate the empirics of exercise and cancellation as good as possible. In a first step, an intensity-based pricing model of El Karoui and Martellini is adapted to the needs of ESOs. In a second step, I calibrate the model with a regression analysis of exercise rates from the empirical work of Heath, Huddart and Lang. The pricing model thus takes account for all effects captured in the regression. Separate regressions enable me to compare options for top executives with those for subordinates. I find no price differences. The model is also applied to test the precision of the fair value accounting method for ESOs, SFAS 123. Using my model as a reference, the SFAS method results in surprisingly accurate prices.
JEL classification: G13; J33; M41; M52
T3  - Working paper series / Johann-Wolfgang-Goethe-Universität Frankfurt am Main, Fachbereich Wirtschaftswissenschaften : Finance & Accounting - 123 
KW  - Employee stock options
KW  - Executive stock options
KW  - Exercise behavior
KW  - Fair value accounting
KW  - Timing risk
KW  - Personalaufwendung
KW  - Lohnstückkosten
KW  - Optionspreistheorie
KW  - Festwert
KW  - Teilwert
KW  - Neubewertung
KW  - Bewertungseinheit
KW  - Aktienoption
KW  - Aktienoptionshandel
KW  - Aktienoptionsplan
KW  - Fair-Value-Bewertung
Y1  - 2003
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/55359
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-553596
SN  - 1434-3401
PB  - Johann-Wolfgang-Goethe-Universität, Frankfurt am Main, Fachbereich Wirtschaftswissenschaften
CY  - Frankfurt am Main
ER  -