Determining fair values of performance-vested and forfeiture-embedded employee stock options

Material TypeArticleLanguageEnglish
TitleDetermining fair values of performance-vested and forfeiture-embedded employee stock options Author(S)Ming-Cheng Wu (Author)
Abstract  This study provides a new approach to determine the fair value of ESOs by extending the performance-vested option pricing model. The model developed in this study takes both vesting period and forfeiture rate into consideration to capture characteristics of ESOs. Empirical and sensitivity analyses give evidence for the importance of these two elements. Empirical results also support that the derived model can be employed to increase the accuracy of ESOs’ fair value ...Paginationp 1083-1106
SubjectManagementDescriptorsFinance
Journal TitleAccounting & Finance  
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