12/19/2000: Corporate Share Repurchases in the 1990s: What Role Do Stock Options Play? (Federal Reserve Board)Excerpt: "This paper investigates how the growth of stock option programs has affected corporate payout policy. Given that earnings per share (EPS) is widely used in equity valuation, some corporations may opt to repurchase shares to avoid the dilution of EPS that results from past stock option grants. Executives may also prefer distributing cash by repurchasing shares or retaining more earnings, as opposed to increasing dividends, to enhance the value of their own stock options."
Important word about authorship:
BenefitsLink ® (BenefitsLink.com) provides this page for you, with a hypertext link to an item we think is interesting and valuable for companies sponsoring employee benefit plans, employees who participate in plans, and firms who provide products and services to plans. But BenefitsLink is not the author of the item to which this hypertext link will take you (unless expressly indicated there).
|
|
|
