TABLE 7:  Stock Options Plans and Pre-post Annual Growth in Performance
	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 co.
1	1985-87	0.022	**	0.017	**	4.132	*	3.59		0.075	**	-0.483	***	0.583	*	-0.087
		(3.18)		(2.12)		(1.67)		(1.14)		(3.52)		(5.38)		(1.82)		(0.18)
2	1995-97	0.01		0.022	***	-0.208		4.97		0.173	**	-1.672	***	0.799	**	0.52
		(1.46)		(2.70)		(0.08)		(1.58)		(8.14)		(18.66)		(2.49)		(1.07)
	Paired co.
3	1985-87	0.004				0.435				0.014				-0.034
		(0.77)				(0.21)				(0.75)				(0.13)
4	1995-97	0.001				-3.348				0.072	**			0.419
		(0.25)				(1.57)				(4.01)				(1.60)
	Change from 1985-87 to 1995-97
5	Stock option co.	-0.012				-4.34				0.098	**			0.216
		(1.24)				(1.28)				(3.38)				(0.49)
6	Paired co.	-0.003				-3.783				0.058	**			0.453
		(0.37)				(1.31)				(2.39)				(1.26)
7	Difference	-0.009		0.005		-0.557		1.38		0.04		-1.189	***	-0.237		0.60
		(0.77)		(0.41)		(0.14)		(0.31)		(1.11)		(9.34)		(0.44)		(0.88)
	Total observations	11478		696		9666		570		9648		588		11532		696
	Number of stock option companies represented	152		116		144		95		144		98		152		116
	Number of paired companies represented	1761		116		1467		95		1464		98		1770		116
	Within-company change following adoption
	of non-management stock option plans^^
8	Pre-adoption	0.029	***	0.029		2.413		1.276		0.028		-0.937		0.381		-0.953
		(2.71)		(2.06)		(0.49)		(0.23)		(0.52)		(6.55)	***	(0.66)		(1.26)
9	Post-adoption	-0.023	*	-0.014		-3.456		-5.808		0.174		-2.288		0.638		-1.612
		(1.88)		(0.78)		(0.54)		(0.74)		(1.29)		(5.84)	***	(0.50)		(0.77)
10	Difference	-0.052	***	-0.043	**	-5.870		-7.084		0.148		-1.350	***	0.257		-0.659
		(3.25)		(1.97)		(0.74)		(0.77)		(1.24)		(4.00)		(0.21)		(0.34)
	Total observations	210		174		192		145		187		147		209		171
	Number of stock option companies represented	15		13		15		12		15		12		15		13
	Number of control 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.
	Stata files	stock4.do		stock4b.do						stock4.do		stock4b.do						stock4.do		stock4b.do						stock4.do		stock4b.do
		stock3bb.do		stock3bp.do						stock3cc.do		stock3cp.do						stock3dd.do		stock3dp.do						stock3ee.do		stock3ep.do
	Within-company change following adoption
	of non-management stock option plans^^
8	Pre-adoption			0.012								9.471								-0.813	***							-0.202
				(0.96)								(1.55)								(5.58)								(0.23)
9	Post-adoption			0.005								-8.574								-1.984	***							-0.866
				(0.25)								(1.15)								(5.91)								(0.51)
10	Difference			-0.007								-18.045	*							-1.171	***							-0.665
				(0.34)								(1.86)								(3.87)								(0.38)
	Number of stock option companies represented			18								17								17								19
	Number of control companies represented			18								17								17								19