The Research on ESOPs Indicates

question 117

Multiple Choice

The research on ESOPs indicates

• A)CEOs with ESOP plans are more likely to lie to affect stock price.
• B)ESOPs positively affect employee satisfaction but the effect on performance is unclear.
• C)ESOPs positively affect profit growth for a company,including net profit.
• D)ESOPs negatively affect employee satisfaction but positively effect performance.
• E)ESOPs positively affect revenues per employee but have a negative affect on job satisfaction on employees.

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Definitions:

Annual Return

The percentage gain or loss on an investment over a one-year period, reflecting the compound rate of return.

Dividend

A portion of a company's earnings distributed to its shareholders, typically in the form of cash or additional stock.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock and typically dividends that are paid out before those to common stockholders.

Annual Dividend

The total amount of dividend payments a company makes to its shareholders over a single fiscal year.