TABLE 6:  Stock Options Plans and Pre-post Change in Performance Levels
	Dependent variables:	Ln(output/employee)				Total Shareholder				Tobin's Q				Return on Assets
						Return
	Sample:	Full		Paired		Full		Paired		Full		Paired		Full		Paired
	Independent variables	(1)		(2)		(3)		(4)		(5)		(6)		(7)		(8)
	All companies w/data in both periods^
	Stock option companies
1	1985-87	0.093	***	0.054	*	1.003		0.742		0.312	**	0.269	***	0.540		0.354
		(4.35)		(1.81)		(0.53)		(0.30)		(6.80)		(3.28)		(0.87)		(0.41)
2	1995-97	0.294	***	0.222	***	3.506	*	4.846	**	0.659	**	0.299	***	4.319	**	2.40	***
		(13.56)		(7.33)		(1.82)		(1.96)		(14.18)		(3.59)		(6.88)		(2.75)
	Paired companies
3	1985-87	-0.005				2.47				-0.037				0.467
		(0.30)				(1.56)				(0.98)				(0.94)
4	1995-97	0.048	***			4.15	***			0.094	**			1.723	**
		(2.76)				(2.62)				(2.47)				(3.43)
	Change from 1985-87 to 1995-97
5	Stock option co.	0.201	***			2.503				0.347	**			3.779	**
		(6.82)				(0.97)				(5.53)				(4.43)
6	Paired co.	0.053	**			1.680				0.131	**			1.256	*
		(2.24)				(0.78)				(2.54)				(1.84)
7	Difference	0.148	***	0.168	***	0.823		4.104		0.216	**	0.030		2.523	**	2.048	*
		(4.22)		(3.96)		(0.26)		(1.19)		(2.85)		(0.26)		(2.48)		(1.68)
	Total observations	12870		768		9942		636		11088		630		13032		774
	Number of stock option companies represented	165		128		147		106		153		105		166		129
	Number of paired companies represented	1980		128		1510		106		1695		105		2006		129
	Within-company change following adoption
	of non-management stock option plans^^
8	Pre-adoption	0.063	*	-0.082		1.978		-1.619		0.458		0.378	*	3.604	**	1.912
		(1.75)		(1.53)		(0.58)		(0.29)		(2.94)		(1.69)		(2.26)		(0.96)
9	Post-adoption	0.14	***	0.009		-0.704		-0.517		0.782		0.359		4.611	*	2.483
		(3.85)		(0.14)		(0.16)		(0.07)		(3.00)		(1.16)		(1.82)		(0.79)
10	Difference	0.077	**	0.091	*	-2.682		1.10		0.325		-0.019		1.007		0.57
		(2.53)		(1.65)		(0.55)		(0.14)		(1.91)		(0.06)		(0.60)		(0.20)
	Total observations	238		186		207		154		216		161		238		188
	Number of stock option companies represented	16		13		15		12		16		12		16		13
	Number of paired companies represented			13				12				12				13
	* p<.10   ** p<.05   *** p<.01
	^ Based on robust regressions run on all companies with complete data for the 1985-87 and 1995-97 periods.  Controls include ln(employment)
	and ln(assets) interacted with each period, plus year dummies and 2-digit industry dummies.
	^^ Based on residuals from robust regressions of performance variables on ln(employment), ln(net assets), and 2-digit industry variables
	run separately for each year.  Reported results are based on stock option companies with at least two pre-adoption observations
	and two post-adoption observations.  Observations were weighted using robust regression weights and number of observations per
	company so that the weighted number of pre-adoption observations equals the weighted number of post-adoption
	observations for each company, to provide a balanced pre/post comparison.