Granting employee stock options (ESOs), market reaction and financial performance

• Main Authors: Bacha, Obiyathulla Ismath, Syed Mohd Zain, Sharifah Raihan, Mohd Rasid, Mohd Eskandar Shah, Mohamad, Azhar
• Format: Article
• Language: English
• Published: Asian Academy of Management and USM Press 2009
• Subjects: H Social Sciences (General); HG Finance
• Online Access: http://irep.iium.edu.my/8011/1/Granting_employee_stock_options_%28ESOs%29%2C_market_reaction_and_financial_performance.pdf; http://irep.iium.edu.my/8011/; http://web.usm.my/journal/aamjaf/Vol%205-1-2009/5-1-6.pdf
• Institution: Universiti Islam Antarabangsa Malaysia

This paper examines several issues related to the implementation of ESOs among Malaysian companies. We examine a total of 52 companies, 26 ESO firms and their matched industry peers over a span of 12 years. We find ESO firm stocks to have marginally higher mean returns and lower volatility than do t...