The impact of employee share option scheme : a review
The interests of management and labour, as factors of production, may not necessarily be aligned with those of the owners. To grapple with this problem, one of the tools that owners of firms have opted for is the employee share option scheme (ESOs). The ESOs are meant to align the interests of the o...
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| Main Authors: | , , , |
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| Format: | Article |
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R.S. Publication
2012
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| Subjects: | |
| Online Access: | http://eprints.utm.my/id/eprint/33594/ http://rspublication.com/ijrm/jan-12%20pdf/13.pdf |
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| Institution: | Universiti Teknologi Malaysia |
| Summary: | The interests of management and labour, as factors of production, may not necessarily be aligned with those of the owners. To grapple with this problem, one of the tools that owners of firms have opted for is the employee share option scheme (ESOs). The ESOs are meant to align the interests of the owners with that of the executives. It is hoped that with this alignment, agency costs will be reduced and hence the performance of the firm and its market value will increase. This study looks into the literature that supports and contradicts these claims. |
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