The Value-Relevance Of Stock-Based Employee Compensation Disclosures

Rees, Lynn L.; Stott, David

doi:10.19030/jabr.v17i2.2077

Cited by 13 publications

(3 citation statements)

References 0 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…It is argued that as stock options may act as a positive signal of expected future growth, they may also be associated with higher future returns Compulsory Stock Option Disclosures 33 and a higher current valuation. Consistent with this, several studies find a positive market response to stock option expense disclosures, including Rees and Stott (2001) and Bell et al (2002). Landsman et al (2006) suggest that option expenses might serve as proxies for intangible assets.…”

Section: Value Relevance Of Stock Option Expensesmentioning

confidence: 62%

Determinants and Valuation Implications of Compulsory Stock Option Disclosures in a Weak Regulatory Setting—The Case of France

Goh

Joos

Soonawalla

2015

Financ Manag Account

View full text Add to dashboard Cite

Using a sample of listed French firms in 2005, the year of mandatory IFRS adoption in the European Union (EU), we investigate the determinants of disclosure compliance of stock option expenses under IFRS 2, Share‐based Payment. Stock options are a popular means of executive compensation in France relative to other EU countries. Prior to 2005, French accounting standards and corporate governance regulations did not require recognition of option expense amounts and required minimal supplementary disclosures. There was also a perception that enforcement was imperfect, in particular with respect to IFRS 2. Given this setting, we explore what factors influence the willingness of firms to follow compulsory IFRS requirements in a weak regulatory setting. We find that overall compliance with IFRS 2 disclosure requirements increases with U.S. and U.K. institutional ownership, U.S. cross‐listing, provision of English language statements, and decreases with CEO and family ownership of the firm. We also investigate how stock market prices are affected by the recognition and disclosure of stock option expenses according to IFRS 2 in this regulatory setting and find that investors value option expenses positively, particularly when accompanied by high‐disclosure compliance. Our findings have implications for other jurisdictions in the process of adopting or converging to IFRS.

show abstract

Section: Value Relevance Of Stock Option Expensesmentioning

confidence: 62%

Determinants and Valuation Implications of Compulsory Stock Option Disclosures in a Weak Regulatory Setting—The Case of France

Goh

Joos

Soonawalla

2015

Financ Manag Account

View full text Add to dashboard Cite

show abstract

“…Opsi saham karyawan memotivasi karyawan untuk bekerja dengan lebih keras dan meningkatkan kinerja perusahaan secara loyal. Oleh karena itu, program opsi karyawan membantu dalam menarik karyawan yang memiliki keahlian (Rees dan Stott, 1998).…”

Section: Tinjauan Program Opsi Saham Karyawan (Posk)unclassified

Dampak Struktur Modal Pada Sensitivitas Penerapan Kompensasi Opsi Saham Karyawan Terhadap Kinerja

Asyik¹

2017

EKUITAS

View full text Add to dashboard Cite

This study aims to test whether the management that receive compensation in the form PENDAHULUANHubungan antara manajemen dengan pemilik perusahaan merupakan paradigma hubungan prinsipal agen, dan pemilik perusahaan sebagai prinsipal memberi kepercayaan (secara formal dalam bentuk kontrak hubungan kerja) kepada manajemen (agen) yang memberi jasa manajerialnya. Berbagai konflik kepentingan dalam perusahaan baik antara manajer dengan pemegang saham, manajer dengan kreditor atau antara pemegang saham,

show abstract

“…Some studies have examined the value relevance of the way executive stock options are presented in published financial statements [6], [7]. These studies compared value relevance when options are measured and presented in financial statements as components of equity, and when options are presented only in notes to financial statements.…”

Section: B Financial Reporting Quality and Executive Stock Option Awardmentioning

confidence: 99%

Financial Reporting Quality, Executive Stock Options and Business Ethics

Rakoto

2015

GSTF J Bus Rev

View full text Add to dashboard Cite

Abstract-This paper tests the improvement of financial reporting quality when firms award stock options to their executives. The originality of this study is that we introduce the moderating effect of business ethics in the model. The sample is made up of 116 Canadian high-technology firms with available data for the fiscal year ending in 2012. We define the quality of financial reporting as the value relevance of accounting information as developed by Ohlson. Our results show that executive stock option award alone does not improve the quality of financial reporting. Rather, the quality improves when a firm awards stock options to its executives and investors perceive that the level of business ethics in that firm is high.

show abstract

The Value-Relevance Of Stock-Based Employee Compensation Disclosures

Cited by 13 publications

References 0 publications

Determinants and Valuation Implications of Compulsory Stock Option Disclosures in a Weak Regulatory Setting—The Case of France

Determinants and Valuation Implications of Compulsory Stock Option Disclosures in a Weak Regulatory Setting—The Case of France

Dampak Struktur Modal Pada Sensitivitas Penerapan Kompensasi Opsi Saham Karyawan Terhadap Kinerja

Financial Reporting Quality, Executive Stock Options and Business Ethics

Contact Info

Product

Resources

About