IDEAS home Printed from https://ideas.repec.org/p/ecl/stabus/1795r.html
   My bibliography  Save this paper

Firms' Voluntary Recognition of Stock-Based Compensation Expense

Author

Listed:
  • Aboody, David

    (U of California, Los Angeles)

  • Barth, Mary E.

    (Stanford U)

  • Kasznik, Ron

    (Stanford U)

Abstract

This study investigates factors associated with firms' decisions in 2002 and early 2003 to recognize stock-based compensation expense under Statement of Financial Accounting Standards (SFAS) No. 123. We find that the likelihood of SFAS 123 expense recognition is significantly related to the extent the firm is active in capital markets, private incentives of top management and members of the board of directors, the extent of information asymmetry, and political costs. Although recognizing firms have significantly smaller SFAS 123 expense, we find no significant incremental relation between recognition likelihood and SFAS 123 expense magnitude after controlling for other factors we expect explain the recognition decision. We also find significant positive announcement returns for earlier announcing firms, particularly those stating that increased earnings transparency motivates their decision.

Suggested Citation

  • Aboody, David & Barth, Mary E. & Kasznik, Ron, 2003. "Firms' Voluntary Recognition of Stock-Based Compensation Expense," Research Papers 1795r, Stanford University, Graduate School of Business.
  • Handle: RePEc:ecl:stabus:1795r
    as

    Download full text from publisher

    File URL: http://gsbapps.stanford.edu/researchpapers/library/RP1795(R).pdf
    Download Restriction: no

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Borio, Claudio & Tsatsaronis, Kostas, 2004. "Accounting and prudential regulation: from uncomfortable bedfellows to perfect partners?," Journal of Financial Stability, Elsevier, vol. 1(1), pages 111-135, September.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ecl:stabus:1795r. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: http://edirc.repec.org/data/gsstaus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.