A study on the effectiveness of the share option scheme in Singapore

This research project aims to evaluate the effectiveness of the Share Option Scheme (SOS) in the Singapore context. Three aspects of the scheme are examined. Firstly. our study shows that the potential costs, whether in absolute terms or relative to the profit before tax, could...

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Bibliographic Details
Main Authors: Kee, Chye Hock, Ong, Lay Khim, Loh, Teck Hui
Other Authors: Nanyang Business School
Format: Final Year Project
Language:English
Published: 2014
Subjects:
Online Access:http://hdl.handle.net/10356/58600
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Institution: Nanyang Technological University
Language: English
Description
Summary:This research project aims to evaluate the effectiveness of the Share Option Scheme (SOS) in the Singapore context. Three aspects of the scheme are examined. Firstly. our study shows that the potential costs, whether in absolute terms or relative to the profit before tax, could be significant for companies. Secondly, the SOS is found to be perceived by companies as effective in reducing staff turnover, to be motivational to employees and to improve organisational commitment. Thirdly, contrary to popular belief. when key financial ratios are studied, the performance of companies with the SOS are found to be less satisfactory as compared to the industry.