Evidence on differences between recognition and disclosure: A comparison of inputs to estimate fair values of employee stock options
I investigate reliability differences across recognition and disclosure regimes to shed light on differing incentives and reporting of employee stock option (ESO) fair values. I compare ESO fair values based on firm-reported inputs with ESO fair values based on benchmark inputs, estimated following authoritative guidance. On average, I find opportunism increases with recognition as compared with disclosure, and that it is associated with incentives to manage earnings. Despite the increase in opportunism, I find that accuracy does not decline for recognizers, and that accuracy differs across voluntary and mandatory recognition.
Year of publication: |
2011
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Authors: | Choudhary, Preeti |
Published in: |
Journal of Accounting and Economics. - Elsevier, ISSN 0165-4101. - Vol. 51.2011, 1-2, p. 77-94
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Publisher: |
Elsevier |
Keywords: | Fair value Earnings management Recognition versus disclosure Employee stock options |
Saved in:
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