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Rothschild Caesarea Center
​Published Papers
The Rothschild Caesarea Center promotes and disseminates information about cutting-edge research from around the world. In addition to publishing research papers, the center offers research grants and awards for research that can improve the efficiency of the capital market in Israel. Abstracts of the most recent research papers the Caesarea Center has sponsored are below.

Analytic Pricing of Employee Stock Options
Zvi Wiener, School of Business Administration, Hebrew University of Jerusalem

The paper introduces a model that captures the main properties that characterize employee stock options (ESO), in particular, the likelihood of early voluntary exercise of rights and the obligation to exercise rights immediately if the employee leaves the firm, unless this happens before options are vested, in which case the options are forfeited. The paper presents the derivation of an analytic formula for the price of the ESO and analyzes its properties and sensitivity with respect to the model’s parameters.

Shareholderism: Board Members’ Values and the Shareholder - Stakeholder Dilemma
Amir N. Licht, Radzyner School of Law, Interdisciplinary Center Herzliya, Israel and ECGI
This study investigates how personal values may affect strategic decisions of board members in Swedish public corporations in dilemmas between shareholders
and other stakeholders. Using vignettes that are based on seminal court cases, we find that shareholderism stances correlate systematically with value priorities.
Directors and CEOs tend to side with shareholders’ interests the more they endorse entrepreneurial values – namely, higher achievement, power, and self-direction values and lower universalism, benevolence, and conformity values. Employee representative directors – a special feature of Swedish corporate governance – exhibit more stakeholderist stances, but in most cases side with shareholders. Finally, directors in more profitable firms exhibit stronger shareholderism.