The relation between stock buyback and employee stock-options policy
Type de matériel :
24
This paper analyzes the relationship between share buyback and stock options policy in France. Financial theories consider that firms that offer stock-options are encouraged to buyback in order to avoid dilution due to the exercise of stock options. A positive relationship appears between the future exercise of employee’s stock options and stock buyback. The desire to prevent the dilution due to the exercise of stock -options can be one of the reasons for share buybacks.
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