Derek C. Jones, The Irma M. and Robert D. Morris Professor of Economics at Hamilton and a visiting professor at the Helsinki School of Economics, recently published an article titled "The Determinants of Stock Option Compensation: Evidence from Finland" in the academic journal Industrial Relations: A Journal of Economy and Society. His co-authors were Panu Kalmi and Mikko Makinen.
The three researchers utilized a new data set consisting of all Finnish publicly traded firms to study how firm characteristics and stock market developments influenced the adoption and targeting of stock option compensation. Stock option adoption was found to be a procyclical phenomenon. Findings from firm-level econometric analysis often corroborated those based on U.S. data, while at times, important differences were also noted.
