Download or read book Impact of stock option expensing on small businesses written by United States. Congress. Senate. Committee on Small Business and Entrepreneurship and published by . This book was released on 2004 with total page 362 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Impact of Stock Option Expensing on Small Businesses written by United States. Congress and published by Createspace Independent Publishing Platform. This book was released on 2018-02-13 with total page 340 pages. Available in PDF, EPUB and Kindle. Book excerpt: Impact of stock option expensing on small businesses : hearing before the Committee on Small Business and Entrepreneurship, United States Senate, One Hundred Eighth Congress, second session, April 28, 2004.

Download or read book IMPACT OF STOCK OPTION EXPENSING ON SMALL HEARING S HRG 108 612 COMMITTEE ON SMALL BUSINESS AND UNITED STATES SENATE 108TH C written by United States. Congress. Senate. Committee on Small Business and published by . This book was released on 2005* with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The FASB Stock Options Proposal written by United States. Congress. House. Committee on Financial Services. Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises and published by . This book was released on 2004 with total page 234 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Impact of stock option expensing on small businesses written by United States. Congress. Senate. Committee on Small Business and Entrepreneurship and published by . This book was released on 2004 with total page 344 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book FASB Proposals on Stock Option Expensing written by United States. Congress. House. Committee on Energy and Commerce. Subcommittee on Commerce, Trade, and Consumer Protection and published by . This book was released on 2004 with total page 160 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book H R 3574 the Stock Option Accounting Reform Act written by United States. Congress. House. Committee on Financial Services. Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises and published by . This book was released on 2004 with total page 140 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Oversight Hearing on Expensing Stock Options written by United States. Congress. Senate. Committee on Governmental Affairs. Subcommittee on Financial Management, the Budget, and International Security and published by . This book was released on 2004 with total page 308 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Impact of Stock Option Expensing as Part of CEO Compensation and Earnings Quality written by Veronica Paz and published by . This book was released on 2012 with total page 194 pages. Available in PDF, EPUB and Kindle. Book excerpt: The objective of this research is to test the expensing of stock options as part of CEO compensation to earnings quality. Agency theory posits a conflict between the CEO's own self-interest and that of the owners who seek to maximize the long term value of their investment. To avoid this conflict compensation should align and bond these parties. Data was retrieved from Compustat, ExecuComp and Corporate Governance databases spanning the years of 2000 through 2009. The Dechow and Dichev (2002) earnings quality model using the change in working capital and error terms taken as the residuals was utilized. All hypotheses used earnings quality as a proxy for management choices and as the predictive power of accruals. The first hypothesis indicated granting of CEO stock options has a positive association to earnings quality. The second hypothesis tests the implementation of SFAS 123 (R) by expensing stock options and the association to earnings quality. The third and final hypothesis utilized the number of BOD members as to compare the association between expensing stock options as part of CEO compensation and earnings quality. Empirical support for all three hypotheses was found and consistent with expectations established by other research using earnings quality methodologies. Both the granting and expensing of stock options as part of CEO compensation has an association to earnings quality. There exists a stronger association between expensing stock options and earnings quality when firms have a larger number of BOD members. Support for agency theory was discovered because all three hypotheses were supported. This study was limited to U.S. firms that were publicly traded on major U.S. exchanges and only CEO compensation. Other executive compensation was not included. These limitations provide opportunities for future research. Knowledge was gained by exploring the earnings quality measures for evidence of bonding and alignment theory. This study extends the research in earnings quality by examining the relationship of granting and expensing of stock options as per SFAS 123 (R). It also contributes to the work in SFAS 123 (R) by testing four years before and after 2005, when implementation occurred.

Download or read book Summary of Legislative and Oversight Activities During the written by United States. Congress. Senate. Committee on Small Business and Entrepreneurship and published by . This book was released on 2005 with total page 88 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Complete Guide to Employee Stock Options written by Frederick D. Lipman and published by Prima Lifestyles. This book was released on 2001 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Numerous private and public companies offer stock option plans every year to motivate, retain, and reward employees. But implementing the right stock option plan can be a complex and daunting undertaking, without the proper guidance.The Complete Guide to Employee Stock Optionsunravels the mystery of creating a meaningful equity compensation plan for employees that is favorable for the business. Author and attorney Frederick D. Lipman describes in complete detail the legal, operational, and motivational aspects of developing a stock option program, whether it's for the new start-up looking to attract top talent or the venerable company looking for ways to reward its best performing employees. Readers will discover how to: * Understand the pros and cons of different option plans* Implement the right plan to meet the company's future plans* Motivate key employees with equity compensation* Minimize the risk of losing equity in a volatile market* And much moreThis book also includes useful information for employees who want to understand what their stock options mean and how to maximize their profitability. Complete wi

Download or read book Stock Option Expensing written by Fabrizio Ferri and published by . This book was released on 2011 with total page 54 pages. Available in PDF, EPUB and Kindle. Book excerpt: In the 2003 and 2004 proxy seasons the Securities Exchange Commission allowed shareholders' proposals to expense employee stock options to be voted upon at the annual meeting. We analyze the determinants of shareholders' votes for a sample of 107 firms. We hypothesize and find that votes for expensing are higher in firms with perceived excessive option compensation and lower expected earnings impact from expensing. Insiders' ownership is positively associated to votes against, while most types of institutional investors tend to vote for expensing. Finally, votes for are higher in larger firms, with higher interest coverage, higher leverage and lower returns.

Download or read book FASB proposals on stock option expensing written by United States. Congress. House. Committee on Energy and Commerce. Subcommittee on Commerce, Trade, and Consumer Protection and published by Government Printing Office. This book was released on 2004-01-01 with total page 147 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Stock Options written by Barbara Wood and published by . This book was released on 2005 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Until June 2005, firms had a choice in accounting for stock option compensation. The majority of firms elected to disclose option compensation expense in the footnotes of their financial statements. However, after the accounting scandals in the early 2000s, many firms moved from disclosing the expense to recognizing the expense as a charge against earnings. This research examines the reasons that firms would voluntarily elect to adopt option recognition prior to regulatory requirement. The decision to recognize option pay is examined with respect to efficient contracting, earnings management, and information signaling. Firms that elect to expense option pay do so to reduce political costs and potential debt covenant violations. These firms also have greater earnings and lower option costs, reducing the impact of the recognition decision. From an information signaling perspective, firms with greater growth opportunities and greater insider ownership of the firm's stock use their recognition decision to reveal their firm's favorable prospects. Examination of the use of option compensation by firms that voluntarily choose to expense option pay and firms that do not reveals that expensing firms are high quality firms that use option compensation more effectively. The payoff relationship between executive option pay and operating income shows diminishing returns for non-expensing firms and a linear relation for expensing firms, suggesting that non-expensing firms may be over-granting option pay. Additionally, the incentive value of CEO option grants for expensing firms is more closely aligned with shareholder interests than for non-expensing firms. The economic determinants of executive option grants is similar for expensing and non-expensing firms. The residuals from the economic determinants model are used as an explanatory variable in a logistic regression model examining the decision to expense option compensation. Positive residuals indicate the firm grants options in excess of the level predicted by the economics determinants model. Firms over-granting option compensation would be less inclined to increase the transparency of their option program by moving the cost information into the firm's financial statements. The model shows that firms that over-grant executive stock options are less likely to voluntarily recognize option pay.

Download or read book FASB Proposals on Stock Option Expensing written by United States. Congress. House. Committee on Energy and Commerce. Subcommittee on Commerce, Trade, and Consumer Protection and published by . This book was released on 2004 with total page 150 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Financial Accounting Standards Board and Small Business Growth written by United States. Congress. Senate. Committee on Banking, Housing, and Urban Affairs. Subcommittee on Securities and Investment and published by . This book was released on 2005 with total page 100 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Early Adoption of Stock Option Compensation Expense written by Petro Lisowsky and published by . This book was released on 2008 with total page 53 pages. Available in PDF, EPUB and Kindle. Book excerpt: I examine the likelihood of firms adopting the fair value based method of accounting for stock option compensation cost in 2002 and 2003. To examine this issue, I use two matched sample methodologies: (1) a size and book-to-market matching method typically employed in empirical accounting and finance research; and (2) a Propensity Score matching method typically used in the life sciences. I create a profile of firms that elected to expense employee stock option compensation when it was not yet required by Statement on Financial Standards No. 123 (Revised): Share-Based Payment (SFAS 123(R)). I find support for the general hypothesis that increasing switching costs from disclosure to recognition lowers the likelihood for stock option expense adoption in 2002 and 2003. More specifically, the likelihood of expensing stock options decreases when the magnitude of (implied) stock option expense increases and the value of options awarded to the firm's executives increases in relation to their total compensation. I find that the likelihood of expensing stock options increases when the interest coverage ratio increases and when the number of options awarded to the firm's executives increases in relation to the number of stock options awarded to all employees. I also find weak evidence that the likelihood of expensing is highest in the healthcare industry. Although these results hold under both matched sample approaches, the Propensity Score approach helps to prevent misleading statistical inference by reducing the bias inherent in traditional size and book-to-market matched sampling.