Chang, Charles; Fuh, Cheng-Der; Hsu, Ya-Hui - In: Journal of Corporate Finance 14 (2008) 5, pp. 630-641
This paper derives a pricing model for employee stock options (ESO) that includes default risk and considers employee sentiment. Using ESO data from 1992 to 2004, the study finds that the average executive's subjective value is about 55% of the Black-Scholes value. Only employees who...
