search query: @author Matsunaga, S. / total: 4
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| Author: | Matsunaga, S. |
| Title: | The effects of financial reporting costs on the use of employee stock options |
| Journal: | Accounting Review
1995 : JAN, VOL. 70:1, p. 1-26 |
| Index terms: | FINANCIAL REPORTING EXECUTIVES STOCK OPTIONS |
| Language: | eng |
| Abstract: | This study uses data on 123 firms over an 11 year period to examine whether the accounting for employee stock options permits them to be used as part of an income management strategy. Using a pooled cross-sectional time-series analysis, the value of options granted is found to be negatively related to the extent the firm is below its target level of income and positively related to the firm's use of income-increasing accounting methods. The author also finds weak evidence of a positive relation between the firm's relative use of income-increasing accounting methods and the probability of issuing unattached stock options rather than income-decreasing securities. |
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