Abstract:The article focuses on decisions to exercise and hold company stock at the maturity of a broad-based employee stock options plan. It investigates why some participants choose an uncertain and risky future reward when an immediate and certain increase in wealth could be secured at exercise. It draws on and expands the "mixed gambles" perspective in behavioral agency theory, utilizing a combination of stock price data and employee survey data from British companies with tax-approved stock option plans. It is fou… Show more
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