Employee Stock Option Exercise and Firm Cost
基于88家上市公司员工行权数据，建立期权行权模型，发现行权频率和员工特征显著影响期权价值，并给出更精确的估值近似方法。
ABSTRACT We develop an empirical model of employee stock option exercise that is suitable for valuation and allows for behavioral channels. We estimate exercise rates as functions of option, stock, and employee characteristics using all employee exercises at 88 public firms, 27 of them in the S&P 500. Increasing vesting frequency from annual to monthly reduces option value by 11% to 16%. Men exercise faster, reducing value by 2% to 4%, while top employees exercise slower, increasing value by 2% to 7%. Finally, we develop an analytic valuation approximation that is more accurate than methods used in practice.