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Cited by 774

The DOI matches its Crossref record; 2 of the 2 references it cites were found in a registry or an index.

The Trouble with Stock Options

Open access
Hall, Brian J, Murphy, Kevin J·2003·Journal of Economic Perspectives
DOI 10.1257/089533003769204353
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Abstract

The benefits of stock options are often not large enough to offset the inefficiency implied by the large divergence between the cost of options to companies and the value of options to risk-averse, undiversified executives and employees. Moreover, the benefits of options can often be achieved more effectively and economically through other means. Why are options so prevalent? Several explanations include changes in corporate governance, reporting requirements, taxes, the bull market and managerial rent-seeking. We offer an alternative hypothesis: boards and managers incorrectly perceive stock options to be inexpensive because options create no accounting charge and require no cash outlay.

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Citations

Cites

Show all 2 references

Research works printed but not linked: 32

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Metadata

Authors
Hall, B. J., & Murphy, K. J.
Venue
Journal of Economic Perspectives
Publisher
American Economic Association
Published
2003-08-01
Volume
17
Issue
3
Pages
49-70
ISSN
0895-3309 (ISSN-L)
DOI
10.1257/089533003769204353
OpenAlex
W3122575551
Cited by
774
References
2
FWCI
166.61
Type
journal article
Language
en
Open access
green

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CoChat. (2026). Citation check: The Trouble with Stock Options. https://app.cochat.ai/papers/10.1257/089533003769204353
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Hall, B. J., & Murphy, K. J. (2003). The Trouble with Stock Options. Journal of Economic Perspectives. https://doi.org/10.1257/089533003769204353

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.