While it is widely acknowledged that financial analysts play an increasingly vital informational role in capital markets, the precise nature of analysts’ informational role in capital markets is not well understood. Commentators frequently assume that analysts obtain their most useful...

One role of stock options in executive compensation packages is to counterbalance the inherently short-term orientation of base salary and annual bonuses. Managerial compensation plans frequently include stock options in order to better align the interests of managers and outside shareholders...