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Sellers or keepers? Stock retentions in stock option plans
Author(s) -
Pendleton Andrew
Publication year - 2005
Publication title -
human resource management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.888
H-Index - 94
eISSN - 1099-050X
pISSN - 0090-4848
DOI - 10.1002/hrm.20073
Subject(s) - stock (firearms) , non qualified stock option , stock options , business , restricted stock , finance , investment decisions , actuarial science , stock market , behavioral economics , mechanical engineering , paleontology , horse , engineering , biology
This article examines stock‐holding behaviors among participants in Save As You Earn (SAYE) stock option plans in the United Kingdom. It examines the influences upon the decision to sell or retain stock once options have been exercised, utilizing data from a study of option plan participants in five large U.K. companies. The main findings are that investment portfolios, the reasons for participating in the option plan, and age are important influences on the decision to retain stock. Contrary to expectations, income and risk preferences have little direct influence once other factors are considered. These results have implications for research, corporate practice, and national policy. © 2005 Wiley Periodicals, Inc.