earticle

영어

This study examined the information effect of stock option on stock price in Korean Stock Exchange(KSE) and Korea Securities Dealers Automated Quotation (KOSDAQ) over the periods from 1997 to June 2000. The result confirms that even though the information effect of stock option is positive in both KSE and KOSDAQ, the size of effect in KOSDAQ is greater than that in KSE. This means that when the growing firms like venture companies endow the stock option to recruit promising employees or motivate managers, the effect of stock option endowment on stock price will be greater through the increase of productivity. Because the returns during announcement period (two days` returns before and after the announcement date) is less accurate than the return on the announcement date, the event study, using daily return on the announcement time, is more appropriate, as long as the exact time of the formal announcement to endow stock option. is known to the public,