scholarly journals Executive Stock Option Exercise with Full and Partial Information on a Drift Change Point

2020 ◽  
Vol 11 (4) ◽  
pp. 1007-1062
Author(s):  
Vicky Henderson ◽  
Kamil Kladívko ◽  
Michael Monoyios ◽  
Christoph Reisinger
Keyword(s):  
Change Point ◽  
Partial Information ◽  
Stock Option ◽  
Executive Stock Option

The Adoption and Structure of Executive Stock Option Plans

1999 ◽  
Author(s):  
Michael E. E. Bradbury ◽  
Janice C.Y. Ching ◽  
Yuen Teen Mak
Keyword(s):  
Stock Option ◽  
Executive Stock Option

scholarly journals Discount and premium awards in the context of pre-existing ESOP conditions

2006 ◽  
Vol 3 (2) ◽  
pp. 54-67
Author(s):  
Bruce A. Rosser ◽  
Jean M. Canil
Keyword(s):  
Stock Option ◽  
Shareholder Wealth ◽  
Wealth Effects ◽  
Executive Stock Option ◽  
Major Implication ◽  
Incentive Problems ◽  
The Cost

This study examines interactions between pre-award ESOP restrictive conditions and award discounts/premiums that characterized executive stock option awards in Australia from the mid-1980s to 2000. Shareholder wealth effects at award suggest that (i) shareholders generally do not gain from offering discounts because associated value increments do not exceed the cost of the discount, (ii) premium awards coupled with exercise restrictions appear to be used to ameliorate the risk of CEO opportunism associated with irregular awards, and (iii) shareholders suffer a wealth decrement when premium awards are used to ameliorate the disinvestment incentive of inferior CEO dilution protection. The second of these findings implies risk of CEO opportunism. A major implication is that award discounts/premiums are used to modify the conditions of pre-existing ESOPs that presumably are dated and no longer optimal for addressing current incentive problems. Analyses of the optimality of award discounts/premiums should take this into account.

Momentum liquidation under partial information

2016 ◽  
Vol 53 (2) ◽  
pp. 341-359
Author(s):  
Erik Ekström ◽  
Martin Vannestål
Keyword(s):  
Change Point ◽  
Optimal Strategy ◽  
Partial Information ◽  
External Shocks ◽  
Momentum Effect ◽  
The Past ◽  
Momentum Trading ◽  
Partially Observable ◽  
Random Change ◽  
Do So

Abstract Momentum is the notion that an asset that has performed well in the past will continue to do so for some period. We study the optimal liquidation strategy for a momentum trade in a setting where the drift of the asset drops from a high value to a smaller one at some random change-point. This change-point is not directly observable for the trader, but it is partially observable in the sense that it coincides with one of the jump times of some exogenous Poisson process representing external shocks, and these jump times are assumed to be observable. Comparisons with existing results for momentum trading under incomplete information show that the assumption that the disappearance of the momentum effect is triggered by observable external shocks significantly improves the optimal strategy.

Executive stock option vesting conditions, corporate governance and CEO attributes: evidence from Australia

2016 ◽  
Vol 58 (2) ◽  
pp. 503-533 ◽  
Author(s):  
Xin Qu ◽  
Majella Percy ◽  
Jenny Stewart ◽  
Fang Hu
Keyword(s):  
Corporate Governance ◽  
Stock Option ◽  
Executive Stock Option ◽  
Ceo Attributes
Sign in / Sign up

Export Citation Format

Share Document