Showing 1 - 10 of 1,224
La versioacute;n espantilde;ola de este artiacute;culo se puede encontrar en: lt;a href=quot;http://ssrn.com/abstract=1159045quot;gt;http://ssrn.com/abstract=1159045lt;/agt;.lt;brgt;lt;brgt;In this paper, we analyze frequently made errors when valuing real options. The best way of doing it is...
Persistent link: https://www.econbiz.de/10012706358
As of February 28, 2006, 958 publicly held companies accelerated the vesting of some or all of their employee stock options in advance of adopting SFAS 123 (R). We examine both the market reaction to these accelerations, as well as the determinants of the decision. Investors, in general, react...
Persistent link: https://www.econbiz.de/10014224848
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...
Persistent link: https://www.econbiz.de/10010316271
This study contributes to the valuation of employee stock options (ESO) in two ways: First, a new pricing model is presented, admitting a major part of calculations to be solved in closed form. Designed with a focus on good replication of empirics, the model fits with publicly observable...
Persistent link: https://www.econbiz.de/10010316309
We investigate the impact of independent valuation specialists on the downward bias of pre-initial public offering employee stock option valuations. Undervalued stock price estimates underlying firms' option grants produce option valuations that overstate earnings and provide employees with deep...
Persistent link: https://www.econbiz.de/10012849510
We examine whether and how firm characteristics, including firm size and liquidity and the implementation of a new share-based compensation recognition rule affect the relation between the employee stock option (ESO) grants (as proxied by the disclosed ESO expenses) and firm value. Prior studies...
Persistent link: https://www.econbiz.de/10013078419
The subject of the article is the presentation of an unconventional method of establishing the value of the company together with investment ventures basing on the concept of real options (Real Option Valuation ROV). The option calculation can be applied in many areas, such as: evaluation of...
Persistent link: https://www.econbiz.de/10009575848
Starting from the Merton framework for firm defaults, we provide the analytics and robustness of the relationship between default correlations. We show that loans with higher default probabilities will not only have higher variances but also higher correlations between loans. As a consequence,...
Persistent link: https://www.econbiz.de/10010301737
Persistent link: https://www.econbiz.de/10001637575
Money is not everything in life but money is the most important need of everyone's life. This paper describes the value of money which changed over a period of time. It also explain the important factor i.e. interest, due to which the value of money changes. This paper also discussed the...
Persistent link: https://www.econbiz.de/10012890787