The effect of option granting on executive stock purchases

Paul A. Grout, Anna Zalewska

Research output: Contribution to journalArticlepeer-review

5 Citations (SciVal)


We provide a simple asymmetric information model showing that, in contrast to portfolio diversification arguments, there is a natural complementarity between executive options and stock ownership. Moreover, managers can be made worse off by being granted more executive options.
Original languageEnglish
Pages (from-to)12-15
JournalEconomics Letters
Issue number1
Publication statusPublished - Jan 2012


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