Journal of Accounting and Economics Vol. 51 No. 1-2 2011
Evidence on differences between recognition and disclosure: A comparison of inputs to estimate fair values of employee stock options
Abstract
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.
- DOI
- 10.1016/j.jacceco.2010.09.004
- Volume
- 51
- Issue
- 1-2
- Pages
- 77-94
- Language
- en
- Sources
- bibtex:phds-export.bib openalex crossref