Impact of employee stock option plan adoption announcements on shareholder wealth in Singapore.
Quek, Chaw Ming.
Teng, Yong Sing.
Date of Issue1999
College of Business (Nanyang Business School)
This paper employs a Brown and Warner (1985) event study methodology to examine the market effect of ESOP adoption in the Singapore stock market. Using the shareholdermeeting date where the ESOP is passed as the announcement date, this paper finds a positive market reaction. The CAAR from day -50 to day 0 is 4.5626% and significant at the 0.01 level. Moreover, although the AAR on day 0 is not significant,the AAR on day -1 is 1.0228%, significant at the 0.01 level.
Final Year Project (FYP)
Nanyang Technological University