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Employee Stock Option Exercises: An Empirical Analysis
This paper describes the exercise behavior of over 50,000 employees who hold longterm options on employer stock at eight corporations. Employees typically exercise options years before expiration,Expand
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What Insiders Know About Future Earnings and How They Use it: Evidence from Insider Trades
This paper provides evidence that insiders possess, and trade upon, knowledge of specific and economically-significant forthcoming accounting disclosures as long as two years prior to the disclosure.Expand
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Psychological Factors and Stock Option Exercise
We investigate stock option exercise decisions by over 50,000 employees at seven corporations. Controlling for economic factors, psychological factors influence exercise. Consistent withExpand
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Jeopardy, Non-Public Information, and Insider Trading Around SEC 10-K and 10-Q Filings
Evidence contrasting U.S. insider trades in high- and low-jeopardy periods and across firms at high and low risk for 10b-5 litigation indicates that insiders condition their trades on foreknowledgeExpand
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Optimal Contracting With Endogenous Social Norms
We model endogenous social norms in an agency framework by assuming that each agent's cost of implementing an action depends on the social norm for that action, defined to be the average level of that action chosen by the agent’s peer group. Expand
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Information Asymmetry and Cross-sectional Variation in Insider Trading*
This study investigates the relationship between insiders’ trades and a firm’s infor-mation environment. We address the basic question: Are candidate measures for thedegree of information asymmetryExpand
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Employee Stock Options
This paper examines the valuation of employee stock options (ESOs). Because ESOs are inalienable, the employee's optimal exercise policy differs from the policy a naive reading of the financeExpand
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Public Disclosure and Dissimulation of Insider Trades
Regulation requiring insiders to publicly disclose their stock trades after the fact complicates the trading decisions of informed, rent-seeking insiders. Given this requirement, we present anExpand
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Information distribution within firms: evidence from stock option exercises
We examine the stock option exercise decisions of over 50,000 employees at seven corporations to provide evidence on the distribution of price-relevant non-public information among employees. WhenExpand
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The effect of a large shareholder on corporate value
This article analyzes the value of a corporation as a function of its ownership structure. Shareholders can acquire costly information about the manager's effort to produce output. ConcentratingExpand
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