Employee stock options and innovation: Evidence from an exogenous shock to employee intellectual property rights
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초록

This study uses an external shock, the 2008 Court of Appeals Federal Circuit (CAFC) ruling that weakened patent property rights of inventor-employees and strengthened those of employers, to examine employee option grants' effectiveness in motivating innovation. Firms that experience a decrease in the property rights of inventor-employees subsequently increase the value, number, delta, and vega of employee option grants, as well as innovation activities following the CAFC ruling. Our evidence suggests that employee stock option compensation is an important factor motivating employees to innovate.

키워드

Employee stock optionsIncentivesInnovationPatentsEXECUTIVE-COMPENSATIONOWNERSHIPINCENTIVESFIRMPERFORMANCEBENEFITSCOSTSRISK
제목
Employee stock options and innovation: Evidence from an exogenous shock to employee intellectual property rights
저자
Jang, SoomiKovacs, TundeChoi, Heeick
DOI
10.1016/j.jcorpfin.2025.102911
발행일
2026-01
유형
Article
저널명
Journal of Corporate Finance
96