Chen, Yenn-Ru; Lee, Bong Soo - In: Journal of Corporate Finance 16 (2010) 1, pp. 88-103
We investigate the determinants of executive stock options (ESOs) and their impact on risky investment and subsequent firm performance in a dynamic setting. We find that, first, the dynamic response of ESOs to growth opportunity and risk is positive and lasts for two to three years. Second, the...