We value UK executive stock options (ESOs) as American options that areawarded conditional on the probability of the holders achieving some performancecriteria. Unlike the standard Black and Scholes (BS) model, which is universally usedboth in the literature and practice, this provides a more...

This paper discusses an increasingly important, yet challenging development, the international coordination of nationally rooted policies or funding schemes to support international collaboration in science and technology (S&T). It conceptualizes ways in which government ministries or agencies...

We price European-style options on assets whose probability distributions have two unknown parameters. We assume a pricing kernel which also has two unknown parameters. When certain conditions are met, a two-dimensional risk-neutral valuation relationship exists for the pricing of these options:...

In the UK, SSAP 13 requires that firms immediately expense most of their R&D expenditures.The reported earnings of high-R&D expenditure firms are therefore likely to convey less valuerelevantinformation to investors than those of less research-intensive firms. Using a sample offirms from the...

This paper analyses the process of knowledge growth in a branch of medical science. Our study of scientific advances in glaucoma research is organized in two parts. In the first we present a qualitative overview of the problem sequences that have characterized 150 years of medical research in...

There is agreement within industrial organisation economics that an inverted U-shaperelationship exists between the level of competition in an industry and the level of innovation inthat industry. Thus, when consolidation changes the level of competition in an industry wemight expect this to...

Innovation is still an obscure concept although many efforts have been made to improve the understanding and measurement of it. The growth of service activities throughout the economy has encouraged scholars, policy makers and executives to explore the determinants and features of the innovation...