haku: @author Guay, W. R. / yhteensä: 4
viite: 2 / 4
| Tekijä: | Core, J. E. Guay, W. R. Kothari, S. P. |
| Otsikko: | The Economic Dilution of Employee Stock Options: Diluted EPS for Valuation and Financial Reporting |
| Lehti: | Accounting Review
2002 : JUL, VOL.77-3, p. 627-652 |
| Asiasana: | ECONOMICS STOCKS STOCK OPTIONS FINANCIAL REPORTING |
| Kieli: | eng |
| Tiivistelmä: | In this paper, the authors derive a measure of diluted EPS that incorporates the economic implications of the dilutive effects of employee stock options. The authors show that the existing FASB treasury-stock method of accounting for the dilutive effects of outstanding options systematically understates the options' dilutive effect, and thus overstates reported EPS. Using firm-wide data on 731 employee stock option plans, the authors' proposed measure suggests that economic dilution from options is, on average, 100 percent greater than dilution in reported diluted EPS using the FASB treasury-stock method. The authors examine the implications of the authors' analysis for stock price valuation, the price-earnings relation, and the return-earnings relation. |
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