We use unique data to empirically analyse the behavior of senior managers in a distinct stock option plan. Combining individual-level exercise data with very detailed questionnaire data, we study how these managers exercise their stock options. Moreover, we investigate which rational and behavioral factors explain differences in the observed exercise behavior. We find that individuals exercise options very early and in a few large transactions. Risk aversion and holdings of company stock cannot explain the exercise behavior in our data. We provide interesting and new results that suggest that exercise decisions depend on the psychological factors miscalibration and mental accounting.
Dieser Eintrag ist Teil der Universitätsbibliographie.
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