TABLE 5:  Stock Option Plans and 1997 Performance Levels
Dependent variables:	Ln(output/employee)						Total Shareholder						Tobin's Q						Return on Assets
							Return
Sample:	Full set			Paired			Full set			Paired			Full set			Paired			Full set			Paired
Independent variables	(1)			(2)			(3)			(4)			(5)			(6)			(7)			(8)
Stock option co.	0.277	***		0.306	***		-3.44			-6.43	**		0.61	***		0.62	***		1.14			0.87
	(8.97)			(8.61)			(1.31)			(1.96)			(6.33)			(3.75)			(0.99)			(0.61)
Paired co.	0.002						3.33						0.01						1.41
	(0.07)						(1.46)						(0.64)						(1.46)
Ln(total employment)	-0.316	***		-0.603	***		5.81	***		-12.75			0.36	***		1.44	*		5.52	***		8.39
	(41.39)			(3.20)			(8.52)			(0.75)			(15.15)			(1.67)			(19.74)			(1.13)
Ln(net assets)	0.30	***		0.261	***		0.62			-2.05			-0.29	***		-0.38	***		-1.15	***		-1.98
	(46.13)			(9.12)			(1.07)			(0.78)			(14.21)			(2.72)			(4.87)			(1.66)
2-digit industry dummies	Yes						Yes						Yes						Yes
n	6630			444			5874			418			6379			434			6716			443
50%+ coverage of non-mgt.	0.22	***		0.213	**		-11.92	*		-11.16			0.53	**		-0.163			-6.6	**		-6.2	*
	(2.96)			(2.35)			(1.84)			(1.29)			(2.32)			(0.20)			(2.40)			(1.73)
<50% coverage of non-mgt.	0.118			0.061			7.68			10.72			0.20			0.213			0.71			-0.18
	(0.17)			(0.48)			(.895)			(0.91)			(0.63)			(0.36)			(0.19)			(0.01)
Unknown coverage of non-mgt.	0.301	***		0.344	**		-3.26			-7.56	**		0.68	***		0.824	***		2.49	**		1.91
	(8.71)			(8.53)			(1.12)			(2.06)			(6.33)			(4.37)			(1.93)			(1.20)
Paired co.	0.003						3.35						0.01						1.47
	(0.11)						(1.47)						(0.09)						(1.52)
Ln(total employment)	-0.316	***		-0.635	***		5.76	***		-9.14			0.37	***		1.24			5.5	***		7.05
	(41.36)			(3.35)			(8.45)			(0.53)			(15.16)			(1.40)			(19.66)			(0.94)
Ln(net assets)	0.297	***		0.262	***		0.67			-1.68			-0.29	***		-0.37	***		-1.15	***		-1.76
	(46.10)			(9.13)			(1.15)			(0.64)			(14.26)			(2.67)			(4.88)			(1.47)
2-digit industry dummies	Yes						Yes						Yes						Yes
n	6630			444			5874			418			6379			434			6716			443
Based on robust regressions that minimize influence of outliers.
T-statistics in parentheses.	* p<.10  **p<.05   ***p<.01