Employee Stock Option Plan on the Company’s Performance
| Vol-3 | Issue-12 | December 2018 | Published Online: 10 December 2018 PDF ( 280 KB ) | ||
| Author(s) | ||
| Aishwarya J 1; Kranti Purohit 2; Vineet Rathi 3; Dr. Thangjam Ravichandra 4 | ||
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1B.Com F&A, Department of Professional Studies, Christ University, Karnataka (India) 2B.Com F&A, Department of Professional Studies, Christ University, Karnataka (India) 3B.Com F&A, Department of Professional Studies, Christ University, Karnataka (India) 4Department of Professional Studies, Christ (Deemed to be University), Karnataka (India) |
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| Abstract | ||
Because of the impact of globalization on Indian business, ESOP thought spreads crosswise over corporate India and corporates began looking at ESOPs as an effective tool to hire and retain employees after SEBI ESOS & ESPP Guidelines 1999. In this paper we have used the historic financial statements of the listed Indian companies who have issued ESOP’s and the impact it had on their revenue and employee turnover ratio. The companies taken into consideration are Infosys, Wipro, Mindteckand Tech Mahindra. For the purpose of the paper we have taken 4 pre ESOP and 4 post ESOP years of financial statements. We have also taken into consideration the number of options exercised and the attrition rates for 5 immediately preceding years. Based on the data obtained we have tried to analyze the impact of ESOPs on the performance of the company. |
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| Keywords | ||
| Employee Stock Ownership Plan (ESOP), attrition rate, company’s performance, correlation, T-test | ||
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