Showing 1 - 10 of 1,110
Persistent link: https://www.econbiz.de/10013261774
This study contributes to the valuation of employee stock options (ESO) in two ways: First, a new pricing model is presented, admitting a major part of calculations to be solved in closed form. Designed with a focus on good replication of empirics, the model fits with publicly observable...
Persistent link: https://www.econbiz.de/10010316309
We examine the effect of IFRS (International Financial Reporting Standards) on the type of performance measures firms … use to evaluate and reward their managers. We show that post-IFRS firms decrease the weight of Earnings-per-Share (EPS …)-based performance measures in CEO pay contracts. We argue that IFRS add “noise” to accounting numbers which, based on optimal …
Persistent link: https://www.econbiz.de/10011116256
The financial crisis began on 2008 has led to a debate about the pluses and minuses of fair-value accounting (FVA). This debate presents a new start for fair-value accounting going forward and standard setters’ push to extend fair-value accounting into other areas. In our research, we found...
Persistent link: https://www.econbiz.de/10010817132
Fair value measurement became pervasive to financial reporting over last 20 years. Under fair value accounting, entities are obliged or permitted to measure particular assets and liabilities at their fair values as at the reporting dates. Fair value is a current market-based hypothetical value....
Persistent link: https://www.econbiz.de/10014177641
This study investigates whether managers use asset securitization gains to substitute loan loss provision (LLP) management for earnings management, and, if so, whether the percentage of credit risk retained affects such a relationship. The literature provides evidence that managers have used...
Persistent link: https://www.econbiz.de/10014048867
Properties of many important valuation rules can be quantified, examined and compared in a unified framework to assist policy decisions. Valuation rules can be viewed as econometric estimators of unobserved values of aggregates. Which valuation rule has minimum mean squared error (relative to...
Persistent link: https://www.econbiz.de/10014050923
significant. We find that firms with minority interest following IFRS exhibit higher stock returns suggesting these firms benefit …
Persistent link: https://www.econbiz.de/10014197659
One objection to fair value accounting for liabilities is that changes in a company’s credit risk are recognized as gains or losses in a manner that is counterintuitive to the way gains and losses are typically interpreted (Lipe 2002). Specifically, when a company’s credit risk increases...
Persistent link: https://www.econbiz.de/10014202658
This paper examines instances of firms that early adopted SFAS 159, The fair value option for financial assets and financial liabilities, and then rescinded or revised their early adoption of the standard because their implementation was not in keeping with the "intent and spirit" of the...
Persistent link: https://www.econbiz.de/10014212959