Access to homeownership is a major social and economic issue in many countries. Failure to maintain affordability has been discussed as the ultimate agglomeration diseconomy. This report sheds light on the thresholds for first-time buyers in Sweden and possible solutions through financial innovation. More specifically, an increased understanding of how alternative mortgage products and attributes of financial structure could fit into the Swedish market to make homeownership more accessible for first-time buyers. We can conclude that redistribution of risk in combination with a culture of bank financing might have explanatory power in why alternative mortgage products are not more common in Sweden. Due to relatively new changes, there was no demand until recently. In combination with the bank's low incentives, there has been no supply either. Furthermore, the rules and legalization have a role in the question where the main finding is a lack of exact definition of the concept of interest. This cause problem for some of these alternative mortgage products. The different attributes investigated through the viewpoint of the Swedish market and first-time buyers found no clear winner. The different attributes have positive and negative sides concerning first-time buyers. Some models probably need a correction of a few regulations and better structures for collateral change and debtor change. However, most of the products lower at least one of the thresholds for first-time buyers, which means that a lot comes down to the product's pricing. We welcome these innovations where we believe the products need to go from one-size-fits-all solutions to offering adapted solutions for individuals in different parts of their lives. As far as we know, this paper is the first of its kind in Sweden and contributes to the affordability discussion and alternative mortgage products. / Tillgång till bostadsägande är en stor social och ekonomisk fråga i många länder. Misslyckande med att upprätthålla överkomliga priser kans ses som en stor negativ effekt med agglomerations ekonomin. Denna rapport belyser trösklarna för förstagångsköpare i Sverige och möjliga lösningar genom finansiell innovation. Mer specifikt vill vi ge en ökad förståelse för hur alternativa bolåneprodukter och attribut för finansiella strukturer skulle kunna passa på den svenska marknaden för att göra bostadsägande mer tillgängligt för förstagångsköpare. Vi kan dra slutsatsen att en omfördelning av risk i kombination med en kultur av bankfinansiering kan ha en förklaringskraft till varför alternativa bolåneprodukter inte är vanligare i Sverige. På grund av relativt nya förändringar har det inte funnits någon efterfrågan förrän nyligen, i kombination med de låga incitamenten från banken har det inte heller funnits något utbud. Vidare spelar lagstiftning en roll i frågan där huvudfyndet är brist på exakt definition av begreppet ränta. Detta orsakar problem för vissa av dessa alternativa bolåneprodukter. De olika attributen har positiva och negativa sidor när det gäller förstagångsköpare. Sannolikt behövs korrigering av ett fåtal regelverk och bättre strukturer för säkerhetsbyte och gäldenärsbyte till för några av modellerna ska vara optimala. De flesta av produkterna sänker dock minst en av trösklarna för förstagångsköpare vilket gör att mycket handlar om prissättningen av produkten. Vi tror att produkterna behöver gå från en lösning som passar alla till att erbjuda olika anpassade lösningar för individer i olika delar av livet. Den här uppsatsen är så vitt vi vet den första i sitt slag i Sverige och bidrar till diskussion om bostadsmarknaden och den svenska strukturen samt alternativa bolåneprodukter.

Share-based payments have become a popular form of employee remuneration, largely for its potential to address the agency problem and are especially effective when made to senior employees. Accounting standards require companies to report share-based payments made to employees as expenses in their financial statements, but extant South African tax legislation does not permit a deduction where shares are awarded to serve as incentives for senior employees. This is due to the fact that the courts do not view the issue of a company‟s own shares as “expenditure”. South African tax legislation presently contains a special tax deduction for shares awarded to employees, but this provision‟s low monetary limit and restrictive requirements are considered to be inadequate, where the intention is to provide adequate incentives to senior employees in order to address the agency problem. The objective of this study is to evaluate whether sufficient grounds exist, based on the principles of sound tax policy, for the legislature to enact a special tax deduction for share-based payments, which would serve as an adequate incentive to senior employees. The evaluation found that the current tax position infringes upon several principles of sound tax policy and that an intervention by the legislature is required. / MCom (South African and International Tax), North-West University, Potchefstroom Campus, 2015

Investors make investment decisions based on their risk appetite. Furthermore, when such investors consider shares as part of their investment portfolio, these investors will consider the risk profile of the company it is interested in. By taking on a certain level of risk, shareholders expect to be commensurately compensated. Shareholders of companies with relatively higher debt levels in their capital structure and therefore higher financial risk, require a relatively higher return on their investment in order to compensate for such additional risk taken. Shareholders expect return in the form of dividend pay-outs, and capital growth in the share price. A positive correlation is therefore expected between the debt levels of a company and the total return to their shareholders, i.e. the sum of the dividend pay-outs and the capital growth in the share price, also referred to as total shareholder return (TSR). The focus of this study is on the platinum industry in South Africa, as this industry is vital to the South African economy in terms of job creation and earner of foreign exchange as South Africa dominates the world production of platinum. The purpose of this study is to investigate whether there is a correlation between the debt levels and the total shareholder return (TSR) of platinum companies listed on the JSE Ltd. Quantitative research techniques were used to address the research problem, making use of secondary data and rank correlation-based research. Firstly, the debt-to-equity ratio for each company was calculated based on book values. Secondly, the TSR of each company was calculated considering the dividends received and capital growth in share price. The correlation between the TSR and the debt-to-equity ratio was determined using Spearman’s rank correlation coefficient. The results were inconclusive, i.e. no, negative and positive relationships where the relationship is for the first 12 years not significant and for the last two years significant. Therefore the final conclusion is that this study is inconclusive to support or to reject the conceptual scope of the study in that risk is concomitant to return, i.e. returns compensate for risks, therefore higher debt levels require higher total shareholder returns (and vice versa). This study contributes to the literature on capital structure decisions from a South African platinum company perspective. The core audience will be the management of South African platinum companies considering changes in their capital structure as well as investors considering investing into a listed platinum company. / MCom (Management Accountancy), North-West University, Potchefstroom Campus, 2015

Share-based payments have become a popular form of employee remuneration, largely for its potential to address the agency problem and are especially effective when made to senior employees. Accounting standards require companies to report share-based payments made to employees as expenses in their financial statements, but extant South African tax legislation does not permit a deduction where shares are awarded to serve as incentives for senior employees. This is due to the fact that the courts do not view the issue of a company‟s own shares as “expenditure”. South African tax legislation presently contains a special tax deduction for shares awarded to employees, but this provision‟s low monetary limit and restrictive requirements are considered to be inadequate, where the intention is to provide adequate incentives to senior employees in order to address the agency problem. The objective of this study is to evaluate whether sufficient grounds exist, based on the principles of sound tax policy, for the legislature to enact a special tax deduction for share-based payments, which would serve as an adequate incentive to senior employees. The evaluation found that the current tax position infringes upon several principles of sound tax policy and that an intervention by the legislature is required. / MCom (South African and International Tax), North-West University, Potchefstroom Campus, 2015

Investors make investment decisions based on their risk appetite. Furthermore, when such investors consider shares as part of their investment portfolio, these investors will consider the risk profile of the company it is interested in. By taking on a certain level of risk, shareholders expect to be commensurately compensated. Shareholders of companies with relatively higher debt levels in their capital structure and therefore higher financial risk, require a relatively higher return on their investment in order to compensate for such additional risk taken. Shareholders expect return in the form of dividend pay-outs, and capital growth in the share price. A positive correlation is therefore expected between the debt levels of a company and the total return to their shareholders, i.e. the sum of the dividend pay-outs and the capital growth in the share price, also referred to as total shareholder return (TSR). The focus of this study is on the platinum industry in South Africa, as this industry is vital to the South African economy in terms of job creation and earner of foreign exchange as South Africa dominates the world production of platinum. The purpose of this study is to investigate whether there is a correlation between the debt levels and the total shareholder return (TSR) of platinum companies listed on the JSE Ltd. Quantitative research techniques were used to address the research problem, making use of secondary data and rank correlation-based research. Firstly, the debt-to-equity ratio for each company was calculated based on book values. Secondly, the TSR of each company was calculated considering the dividends received and capital growth in share price. The correlation between the TSR and the debt-to-equity ratio was determined using Spearman’s rank correlation coefficient. The results were inconclusive, i.e. no, negative and positive relationships where the relationship is for the first 12 years not significant and for the last two years significant. Therefore the final conclusion is that this study is inconclusive to support or to reject the conceptual scope of the study in that risk is concomitant to return, i.e. returns compensate for risks, therefore higher debt levels require higher total shareholder returns (and vice versa). This study contributes to the literature on capital structure decisions from a South African platinum company perspective. The core audience will be the management of South African platinum companies considering changes in their capital structure as well as investors considering investing into a listed platinum company. / MCom (Management Accountancy), North-West University, Potchefstroom Campus, 2015

This paper explores the effects of managerial changes on the share prices of publicly traded football teams in England. Using data from 9 publicly traded teams during 1992- 2016, 21 managerial changes were analyzed through an event study analysis. Events were categorized as sackings or resignations, and the hypotheses for each were laid out differently. The results indicated that two of the managerial sackings generated negative abnormal returns prior to the sacking and positive abnormal returns after the change of manager. The study also identifies the difficulties in the study of football teams’ share prices due to their illiquidity and identifies improvements that can make further research in this topic more accurate.

Thesis (PhD (Business Management))--University of Stellenbosch, 1992. / ENGLISH ABSTRACT: In this dissertation the association between inflation-adjusted data and the behaviour of share prices is investigated. The primary purpose of this investigation is to make a contribution to the body of knowledge regarding share price behaviour, and more specifically with respect to the relationship between inflation accounting and the share market. The disclosure of inflation-adjusted data is not mandatory in South Africa, and few companies have disclosed supplementary current cost income statements. A somewhat larger number of companies make provision for inflation in their financial results by revaluing their assets and accounting for additional depreciation. Prior to 1984 a fair proportion of the companies listed on the Johannesburg Stock Exchange also used the LIFO method of inventory valuation. The disclosed inflation-adjusted data is very limited, necessitating the estimation of the inflation-adjusted data. To estimate the inflation adjustments, a number of inflation accounting models were developed based either on AC 201 or other suggestions found in the literature. These models were then applied to the financial results of listed industrial companies. In the first empirical analysis contained in this dissertation the inflation adjustments generated by the various models were compared to identify unique models for further use in the market related empirical work. From this analysis it was established that AC 201 is open to such a divergent interpretation that significantly different inflation adjustments are generated. From the literature reviewed, three research designs showed promise for application to the market related empirical analyses. The first design used was the event study which was used to evaluate the share market's reaction to the abolition of the tax benefits associated with the LIFO method of inventory valuation. The share market showed no significant reaction for a period of 21 weeks surrounding the announcement, making possible statements regarding the relative efficiency of the Johannesburg Stock Exchange impossible. It was, however, established that the research design used is very sensitive to sample formation, and it is recommended that special care should be used in market related studies to ensure that both operating and holding companies are not included in the same sample. The second research design used was the incremental information content design. Limited incremental information content was found in the inflation-adjusted income for companies which disclosed no inflation adjustments. For companies that did disclose some aspects of inflation accounting, the inflation-adjusted income was often the better explanatory variable of the residual share returns, but no incremental information content could be detected. Based on analyses performed on single years of data it was found that the inflation-adjusted income was as good an explanatory variable of the residual share returns as the historic cost variable. The final research design used was the income measurement perspective. It was found that in general the historic cost income behaved as expected, but the inflation adjustment to income seldom displayed any income measuring properties. The only inflation accounting model that displayed signs of income measurement properties contained as part of its adjustment unrealised holding gains on fixed assets. This could be a indication that the disclosure of unrealised holding gains could be useful. The lack of results found for AC 201 possibly points to its inadequacy. In general the relationship between the inflation-adjusted data and the share market was found to be very weak. / AFRIKAANSE OPSOMMING: In hierdie proefskrif word die verwantskap tussen inflasie-aangepaste data en die gedrag van aandeelpryse ondersoek. Die primere doel met hierdie studie is om by te dra tot die kennis oor die gedrag van aandeelpryse, en dan meer spesifiek met betrekking tot die verwantskap tussen inflasie-rekeningkunde en die aandelemark. In Suid-Afrika is dit nie verpligtend om inflasie-aangepaste data bekend te maak nie, en min maatskappye publiseer 'n aanvullende inkomstestaat van huidige koste. 'n Ietwat groter aantal maatskappye maak voorsiening vir inflasie in hul finansiele resultate deur hul bates te herwaardeer en addisionele waardevermindering af te skryf. Voor 1984 het 'n aantal maatskappye wat op die Johannesburgse Effektebeurs genoteer is, ook voorraad volgens die LIEU metode gewaardeer. Slegs beperkte inflasie-aangepaste data is dus beskikbaar, wat die skatting van sodanige data noodsaak. Om die inflasie-aangepaste data te kan skat, is 'n aantal inflasie-rekeningkunde modelle ontwikkel, op grond van of RE 201 of ander voorstelle in die literatuur. Hierdie modelle is daarna toegepas op die finansiele resultate van genoteerde nywerheidsmaatskappye. In die eerste empiriese ondersoek wat in hierdie proefskrif vervat is, is die inflasieaanpassings wat deur die onderskeie modelle gegenereer is, met mekaar vergelyk om te bepaal watter uniek is vir gebruik in die markverwante empiriese ondersoek wat volg. Met hierdie ondersoek is vasgestel dat RE 201 so uiteenlopend vertolk kan word dat inflasie-aanpassings wat statisties beduidend van mekaar verskil, gegenereer word. Uit die literatuur wat bestudeer is, blyk dit dat drie verskillende navorsingsontwerpe geskik vir toepassing in die markverwante ondersoeke is. Die eerste ontwerp wat gebruik is, is die gebeurtenisstudie waarmee die effektebeurs se reaksie bepaal is op die afskaffing van die belastingvoordeel wat aan die LIEU-voorraadwaardasie gekoppel was. Die effektebeurs het gedurende die 21 weke rondom hierdie aankondiging geen betekenisvolle reaksie getoon nie. Dit maak enige afleidings oor die relatiewe doeltreffendheid van die effektebeurs onmoontlik. Daar is wel vasgestel dat die navorsingsontwerp baie sensitief vir die samestelling van die steekproef is. Dit word aanbeveel dat sorg gedra behoort te word dat 'n bedryfsmaatskappy nie saam met sy houermaatskappy in dieselfde steekproef opgeneem word nie. Die tweede navorsingsontwerp wat gebruik is, berus op die inkrementele inligtingsinhoud. Die inflasie-aangepaste inkomstesyfers van maatskappye wat geen aanpassings vir inflasie toon nie, bevat beperkte inkrementele inligting. Vir maatskappye wat wel inflasieaanpassings openbaar maak, is die inflasie-aangepaste inkomstesyfer dikwels die beste beskrywende veranderlike van die residuele aandeelopbrengste, maar geen inkrementele inligting kon gevind word nie. Uit ontledings wat op 'n jaarbasis uitgevoer is, kan daar afgelei word dat die inflasie-aangepaste inkomstesyfer net so 'n goeie beskrywende veranderlike van die residuele aandeelopbrengste as die historiesekoste-inkomstesyfer is. Die laaste navorsingsontwerp wat gebruik is, berus op die inkomstemetingsperspektief. In die algemeen is daar gevind dat die historiesekoste-inkomstesyfer volgens verwagting reageer, maar dat die inflasie-aanpassing selde enige inkomstemetingseienskappe bevat. Die enigste inflasie-rekeningkunde model wat tekens van inkomstemetingseienskappe toon, bevat ongerealiseerde houwinste op vaste bates as deel van sy regstelling. Dit kan beskou word as 'n teken dat die openbaarmaking van ongerealiseerde houwinste nuttig kan wees. Die gebrek aan betekenisvolle resultate vir RE 201 hou die moontlikheid in dat dit ontoereikend is. In die algemeen is gevind dat die verwantskap tussen inflasie-aangepaste data en die gedrag van aandele op die effektebeurs baie swak is.

Thesis (MBA (Business Management))--University of Stellenbosch, 2007. / AFRIKAANSE OPSOMMING: Verskeie navorsingsprojekte is oor die jare gedoen ten opsigte van die voorspellingsmoontlikhede van kontantvloei en winste, met teenstrydige resultate. Daar is egter weinig navorsing gedoen oor die verhouding wat tussen winste en kontantvloei bestaan. Hierdie navorsingsverslag beoog om ondersoek in te stel na die verhouding tussen kontantvloei en winste, dus om te poog om te bepaal watter een die drywer is, maar ook om te bepaal of die een veranderlike ingespan kan word om vooruitskattings ten opsigte van die ander te kan doen. Aangesien finansiële tydreekse die meeste van die tyd nie-stasionêr is, moet dit in ag geneem word wanneer die kousale verwantskap tussen die twee veranderlikes bepaal word, asook wanneer regressie-analise met die oog op vooruitskatting gedoen word. Daar word egter vermoed dat die aspek van stasionariteit weinig aandag geniet in menige navorsing wat ten opsigte van finansiële tydreekse gedoen word. Die feit dat weinig tydreekse stasionêr is, is bevestig deur te toets vir die bestaan van eenheidswortels in die veranderlikes. Die beste resultate vir stasionariteit is verkry deur die tweede verskille van die veranderlikes te bereken. Daar kon egter nie met sekerheid vasgestel word of winste kontantvloei dryf of andersom nie. Die gevaar van skyn-korrelasie is ook bewys, aangesien 'n groot aantal pare veranderlikes beduidende korrelasies tussen mekaar aandui, maar wanneer hulle stasionariteit en kousaliteit in ag geneem word, is weinig van die pare veranderlikes kousaal verwant aan mekaar. Die toets vir ko-integrasie is ingespan om steun te verleen by die regressie-analise en vooruitskatting van die tydreekse. Die regressie analise van die geko-integreerde tydreekse het in die meeste gevalle 'n hoë R2 en aangepaste R2 gelewer. Die vooruitskattings was egter teleurstellend onakkuraat. / ENGLISH ABSTRACT: Throughout the years a variety of research projects have been done about the predictive ability of cash flow and earnings, with contradictory results. However, limited research has been done about the relationship between cash flow and earnings. The aim of this research report is to investigate the relationship between cash flow and earnings, thus attempting to determine which one is the driver, but also to investigate the ability of one variable to predict the other. Because financial time series are non-stationary most of the time, this fact has to be taken into account when the causal relationship between the two variables is determined, as well as when regression analysis is done with forecasting in view. It is, however, suspected that the fact of stationarity has been neglected in much of the research that has been done on financial time series. The fact that very few time series are stationary has been established by testing for the existence of unit roots in the variables. The best results for stationarity were obtained by calculating the second differences of the variables. It could not be established beyond doubt whether earnings cause cash flows or vice versa. The danger of spurious correlation has been proved, because a vast number of pairs of variables indicates a significant correlation with one another, but when stationarity and causality are taken into account, only a few pairs of variables are truly significantly correlated to one another. The test for co-integration was used to assist in the regression analysis and forecasting of non-stationary time series. The regression analysis of most of the co-integrated variables resulted in a high R2 and adjusted R2. The forecasted values, however, were disappointingly inaccurate. / cmc2010

Thesis (MBA)--Stellenbosch University, 2006. / ENGLISH ABSTRACT: A, sometimes, very controversial concern in any professional service firm across the globe, be it a law firm, accounting practice or consulting engineering firm, is how to construct an equitable, performance-based reward system for executives and professional partners. This study project will address those key issues that affects partner compensation and profit sharing decisions within professional law firms on a daily basis, by establishing which factors influence the current and future legal environment as well as the factors which drive the decision making process when selecting a partner compensation system for a specific law firm, regardless of size and legal focus. This study project also establish which partner compensation systems are currently available and frequently being used by several law firms across the globe, by investigating and analysing their intrinsic features and operations. A total of eleven compensation systems have been identified and will be reported on. This includes the different lockstep models, the merit or performance–based model (also referred to as the discretionary model), the peer-review system as well as other least frequently used systems like the equal partnership, ownership percentage model, 50/50 subjective-objective system, the modified “Hale and Dorr”, simple unit and the team building systems. The study project, by focussing on the operations of a specifically selected South African law firm, will furthermore investigate what effects a possible firm-wide approach to profit sharing, instead of the traditional partner / owner profit sharing systems, might have on the overall operation and / or performance of a law firm. Several performance appraisal concepts and general remuneration principles will be addressed which forms the backbone of this firm-wide approach and which are the key issues to effectively evaluate a person’s overall performance and contributions to a firm – those elements that should be aligned with your firm’s remuneration system. In essence, the aim of this study project is to establish an information resource base on partner compensation and profit share models in law firms, to establish the viability of introducing a firm-wide approach as alternative to the traditional partner-only profit sharing models, to establish a formal framework and model for firm-wide profit sharing for the selected South African law firm and ultimately presenting an effective decision making tool and concept document when selecting a fair and equitable remuneration system for your legal practice. / AFRIKAANSE OPSOMMING: Een van die mees kontroversiële aspekte in professionele dienste firmas wêreldwyd, hetsy binne ‘n regsfirma, rekeningkundige praktyk of konsulteringsfirma, is hoe om uitvoerende bestuur en professionele vennote op gelyke voet te vergoed gebaseer op hulle werklike algehele prestasie. Hierdie werkstuk sal daardie kern aspekte adresseer wat vennote vergoeding- en winsdelingstelsel besluite, binne regsfirmas, op ‘n daaglikse basis affekteer deur die lewensvatbare faktore te identifiseer wat die huidige en toekomstige regsomgewing sal beïnvloed, asook daardie faktore wat die besluitnemingsproses dryf wanneer dit kom by die keuse van ‘n vennote vergoedingstelsel vir ‘n spesifieke regsfirma, ongeag die relatiewe grootte en fokus van die regsfirma. Hierdie werkstuk sal verder vasstel watter vennote vergoedingstelsels tans op ‘n gereelde basis gebruik word deur regsfirmas wêreldwyd, deur ondersoek in te stel na die verskillende stelsels se inherente eienskappe en operasionele werking. Elf vennote vergoedingstelsels word in hierdie studie bespreek. Dit sluit in die verskillende tipe “Lockstep” modelle, die prestasie-meriete gebasseerde modelle, die “peer-review” model asook ander modelle wat minder konsekwent toegepas en aangewend word soos die gelyke vennootskap model, die eienaarskap persentasie model, die 50/50 subjektiewe-objektiewe model, die aangepaste “Hale and Dorr”, die “simple unit” en spanbou modelle. Die werkstuk, deur spesifiek te fokus op die werksaamhede van ‘n spesifieke Suid-Afrikaanse regsfirma, sal ook die effek van ‘n moontlike firma-wye benadering tot winsdeling ondersoek, in teenstelling met die tradisionele benadering van net uitvoerende bestuur wat kan deel in die wins, en sal fokus op die invloed van so ‘n stelsel op die algehele werksaamhede en prestasies van ‘n tipiese regsfirma. Verskeie konsepte van prestasie meting, asook die algemene beginsels van vergoeding word aangespreek wat die fondamente vorm van so ‘n firma-wye benadering – dus daardie kern aspekte wat effektiewe prestasie meting verteenwoordig en wat in lyn gebring moet word met die firma se gekose vergoedingstelsel. Die doel van hierdie werkstuk is dus om ‘n inligtingsdatabasis oor vennote vergoeding- en winsdelingstelsels in regsfirmas te vestig, om vas te stel of daar moontlike potensiaal daarin is om ‘n firma-wye benadering te ontwikkel as alternatief vir die tradisionele modelle waar net uitvoerende bestuur of eienaars deel in die winste, en vervolgens om ‘n formele raamwerk en model vir firma-wye winsdeling te ontwerp om moontlik geimplementeer te word in die spesifieke regsfirma wat ondersoek word. Die werkstuk sal dus dien as ‘n effektiewe besluitnemings- hulpbron wanneer daar op ‘n spesifieke vergoedingstelsel vir jou regsfirma besluit moet word.

This interpretive study explores the effect of employee share ownership (ESO) plans (SIP, EMI and SAYE) on employee attitudes and behaviours at work by taking into account the role of Psychological Ownership (PO), characterised by feelings of "mine" and "ours". The key concepts and relationships specified in positivist causal models of ESO and PO were translated into a set of interview questions and were used to explore with 37 ESO plan participants and 9 ESO plan managers whether the causal models fit with the way they explain for themselves their experiences of and reactions to employee share ownership. In doing this, the study has responded to suggestions made in the research literature to compare the attitudinal effects of different types of employee ownership, avoid the manipulation of large, readily available data sets, and to provide insights into the causal processes surrounding ESO. Overall, three main themes can be identified from employees responses, which appeared to have some influence on whether or not the share plan was felt to have an impact. First, employees interest in making money, and expectations of whether they would, played a large part in their explanations of ESO s impact. A number of employees felt the share plan helped retain them in the organisation. However, this did not appear to be because the plan was making then more committed, in the sense that they would feel more emotionally attached, or a greater sense of identification with the company. Instead, the plan was retaining employees by causing them to make an assessment of the costs associated with leaving (continuance commitment). Second, many of the ESO outcomes featured in the academic literature were already felt to be experienced by employees at work and ESO was felt to only be able to add in a small way to what was already being experienced. Finally, in some situations ESO represented something quite meaningful to employees. ESO was sometimes interpreted as being a sign that the company valued employees, wanted them to feel part of the company, or that the employees were important to the company. The offer to participate in ESO was interpreted in some cases as being an acknowledgement of hard work, and an indication of how the company wanted employees to feel. This was found to enhance ESO s capacity to impact how employees felt at work. However, with regards to most outcomes explored in this study, employees reported little or no impact from ESO. Findings suggested that the ESO plans, even when they were felt to lead to feelings of PO, provided little incentive to work harder. PO was also found to play little or no part in employees explanations of how share plans had an impact or why they did not. Employees felt they had a long wait before making a financial return and no tangible day to day benefits of ESO. This led the plans, and the potential gains that could be made, to be perceived as very long term, and easily forgotten. Finally, this study highlights a mismatch between the causal models of ESO and PO, the conventional wisdom of ESO, the views of the ESO managers, and the interpretations of the employees who were interviewed and raises the question of whether ESO achieves what it is intended (and often believed) to achieve.