7/3/2006: Timing of Employee Stock Option Exercises and the Valuation of Stock Option Expense (Social Science Research Network)

Excerpt: This study examines the degree to which employees' idiosyncratic early option exercise behavior affects firms' employee stock option valuation estimates. Prior research suggests that utility-based valuation models that account for early employee exercise do not yield different value estimates than models that simply adjust for coarse early exercise timing estimates. [The 56 page PDF of the paper may be downloaded from the target page.]