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Abstract - Quest for Global Competitiveness - Universidad de Puerto ...

Abstract - Quest for Global Competitiveness - Universidad de Puerto ...

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TABLE 4 (B) Changes to the Equity Compensation Plans of the MatchingFirms after January 1, 2006Panel A: Matching FirmsInitial basic sample of Matching firms withAnnouncing firms (see Table 1)Firms that were matched with more than oneAnnouncing firmFirms that merged or were privatizedAdjusted sample of Matching firms <strong>for</strong> analysis ofchanges to Firms’ stock option plans183(33)(4)146Initial adjusted sample of Matching firmsAnnouncing firms with no change to their option plansAnnouncing firms with changes to their option plansAnalysis of changes ma<strong>de</strong> by the Matching firms:Changes in their option valuation mo<strong>de</strong>lChanges in their Vesting requirementsAccelerated the vesting of optionsIncreased grants of options to Directors and EmployeesDecreased grants of options to Directors and EmployeesReplaced stock options with other stock awardsOther changesTotal changes (**)146(79)671041211194693** Total changes add up to more than the original adjusted sample size of theMatching firms because some firms had more than one change to their stockoption plans.The changes observed in the Matching firms’ stock option plans are similar innature to the changes observed <strong>for</strong> the Announcing firms, with the onlysignificant difference being the number of firms in each group. In terms of theprior expectations <strong>for</strong> this area of the investigation, the results obtained provi<strong>de</strong>dthe answers to the research questions inquiring the nature of the significantchanges ma<strong>de</strong> by the Announcing and Matching firms to their equitycompensation plans. The Matching firms also mimicked the Announcing firms by19

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