An empirical evaluation of the information content of share option scheme announcements in Hong Kong : a thesis presented in partial fulfilment of the requirements for degree of Master of Business Studies in Accountancy at Massey University, Palmerston North, New Zealand
This study investigates the announcement effects of share option schemes using data from Hong Kong market between 2002 and 2004. Findings indicate that share option scheme announcements have information content and that the market overall reacts unfavorably to share option scheme announcements in Hong Kong. Further investigation reveals that the market reacts favorably to share option scheme announcements by financial companies and large size firms. Higher potential growth companies have lower returns when they announce share option schemes. In addition, large size firms are more likely to announce share option schemes independently of firms public announcements.