HARGA REFERENSI DAN RETURN EXPECTATION DALAM EMPLOYEE STOCK OF OPTION PLAN

Abstract

This study take-up moderation issue of the price reference toward the influence of the number of stock executed on the potential stock return in the ESOP. ESOP represents a program aiming to give opportunity to employees especially to the executives to have shares by stock option, because employees have given services to company as means to motivate employees especially the executives to improve their performance. Establishment of the potential stock return or investment prospect over earnings management trigger wealth transfer from the principal’s to the agent. The number of samples are the 39 entities and generate 116 observations. These samples are chosen by purposive sampling for entities adopting ESOP since 1999 up to 2010. By using moderated regresssion analysis, it is found that the number of stock executed significantly affect the potential return in the ESOP, and the exercise price could moderate the influence of the number of stock executed on the potential return in the ESOP.