Penn State University - Smeal College of Business
PSU search
Student Exchange Smeal site map Contact us Accounting faculty directory

Steven Huddart picture
Should I exercise my stock options?
Case Studies
Stock compensation glossary
Compensation links
Securities law links
Tax links
Office hours and location
Facts About The School
Home | Previous | Next | Huddart Site Map

Information distribution within firms: evidence from stock option exercises

Steven Huddart and Mark Lang

We examine the stock option Exercise decisions of over 50,000 employees at seven corporations to provide evidence on the distribution of price-relevant non-public information among employees. When option exercise (adjusted for other factors affecting exercise) is low, stock returns in the coming six months are 10% higher than when option exercise is high. The exercise decisions of relatively junior employees contain at least as much price-relevant information as the exercise decisions of more senior employees.

JEL Classification: D82 G28 J33 K22

Keywords: accounting, compensation, disclosure, regulation, securities

Journal of Accounting & Economics Volume 34, Nos. 1-3 (January 2003) 3-31

Download a pre-publication version of the paper from SSRN.

Steven Huddart
Smeal College of Business, Penn State University, University Park, PA 16802-3603 USA
(814) 863-0048
Home | Previous | Next | Huddart Site Map
was last updated on Tue, Aug 21, 2018.
Today is Tue, Sep 29, 2020.

Unless otherwise noted, all material is:
Copyright ©1995-2018 Steven Huddart. All rights reserved.