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Cited by 435

The DOI matches its Crossref record; 16 of the 16 references it cites were found in a registry or an index.

The exercise and valuation of executive stock options

Open access
Carpenter, Jennifer N.·1998·Journal of Financial Economics
DOI 10.1016/s0304-405x(98)00006-3
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Abstract

In theory, hedging restrictions faced by managers make executive stock options more difficult to value than ordinary options, because they imply that exercise policies of managers depend on their preferences and endowments. Using data on option exercises from 40 firms, this paper shows that a simple extension of the ordinary American option model which introduces random, exogenous exercise and forfeiture predicts actual exercise times and payoffs just as well as an elaborate utility-maximizing model that explicitly accounts for the nontransferability of options. The simpler model could therefore be more useful than the preference-based model for valuing executive options in practice.

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Metadata

Authors
Carpenter, J. N.
Venue
Journal of Financial Economics
Publisher
Elsevier BV
Published
1998-05
Volume
48
Issue
2
Pages
127-158
ISSN
0304-405X (ISSN-L)
DOI
10.1016/s0304-405x(98)00006-3
OpenAlex
W2164335397
Cited by
435
References
16
FWCI
31.04
Type
journal article
Language
en
Open access
hybrid

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CoChat. (2026). Citation check: The exercise and valuation of executive stock options. https://app.cochat.ai/papers/10.1016/s0304-405x(98)00006-3
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Carpenter, J. N. (1998). The exercise and valuation of executive stock options. Journal of Financial Economics. https://doi.org/10.1016/s0304-405x(98)00006-3

Data sources

Bibliographic data: Semantic Scholar, OpenAlex, Crossref.

Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).

Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.