Employee stock purchase plans
By: Gary V. Engelhardt, Brigitte C. Madrian.
Contributors: Madrian, Brigitte C.; National Bureau of Economic Research.
Series: NBER working paper series ;; working paper 10421; Working paper series (National Bureau of Economic Research : Online) ;; working paper no. 10421.
Publisher: National Bureau of Economic Research
Published: 2004
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Subjects: Employee ownership.
Description: "Employee stock purchase plans (ESPPs) are designed to promote employee stock ownership broadly within the firm and provide another tax-deferred vehicle for individual capital accumulation in addition to traditional pensions, 401(k)s, and stock options.  We outline the individual and corporate tax treatment of ESPPs and the circumstances under which ESPPs will be preferred to cash compensation from a purely tax perspective.  We then examine empirically ESPP participation using administrative data from 1997-2001 for a large health services company that employs approximately 30,000 people.  The picture that emerges from the analysis of these data suggests that there is substantial non-participation in these plans even though all employees could increase gross compensation through participation.  We discuss a number of potential explanations for non-participation"--National Bureau of Economic Research web site.
Notes: Includes bibliographical references.
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Mode of access: World Wide Web.