Selling Company Shares to Reluctant Employees: France Telecom's Experience

Francois Degeorge (), Dirk Jenter, Alberto Moel and Peter Tufano

No 7683, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: In 1997, France T‚l‚com, the state-owned French telephone company, went through a partial privatization. The government offered current and prior France T‚l‚com employees the opportunity to buy portfolios of shares with various combinations of discounts, required holding periods, leverage, tax treatment, and levels of downside protection. We adapt a neoclassical model of investment decision-making that takes into account firm-specific human capital and holding period restrictions to predict how employees might respond to the share offers. Using a database that tracks over 200,000 eligible participants, we analyze the employees' characteristics and their decisions whether to participate; how much to invest; and what form of stock alternatives they selected.

JEL-codes: G0 G10 (search for similar items in EconPapers)
Date: 2000-05
New Economics Papers: this item is included in nep-fin, nep-fmk and nep-lab
Note: CF
References: Add references at CitEc
Citations: View citations in EconPapers (6)

Published as Degeorge, Francois & Jenter, Dirk & Moel, Alberto & Tufano, Peter, 2004. "Selling company shares to reluctant employees: France Telecom's experience," Journal of Financial Economics, Elsevier, vol. 71(1), pages 169-202, January.

Downloads: (external link)
http://www.nber.org/papers/w7683.pdf (application/pdf)

Related works:
Journal Article: Selling company shares to reluctant employees: France Telecom's experience (2004)
Working Paper: Selling company shares to reluctant employees: France Télécom's experience (2000)
Working Paper: Selling Company Shares to Reluctant Employees: France Télécom's Experience (2000)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberwo:7683

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w7683

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().