Kuo, Chii-Shyan; Yu, Shih-Ti - In: The North American Journal of Economics and Finance 26 (2013) C, pp. 400-415
Issuing employee stock options (ESOs) transfers equity claims from current stockholders to employees, and thereby dilutes existing shareholder interests. Because employees are motivated to exert additional effort toward better performance, the value of transferred ownership claims proxied by ESO...