The value relevance of employee stock options : mandatory vs voluntary disclosure / Adam S. Bowe.

Bowe, Adam S. (2002). The value relevance of employee stock options : mandatory vs voluntary disclosure / Adam S. Bowe. Honours Thesis, School of Business, The University of Queensland.

       
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Author Bowe, Adam S.
Thesis Title The value relevance of employee stock options : mandatory vs voluntary disclosure / Adam S. Bowe.
School, Centre or Institute School of Business
Institution The University of Queensland
Publication date 2002
Thesis type Honours Thesis
Total pages 83
Language eng
Subjects 14 Economics
Formatted abstract This study has two primary objectives: first, to determine whether employee stock options (ESOs) have any bearing on investor's decisions when setting Australian stock prices. Evidence in the US suggests that the market expenses ESOs, and therefore hypothesis one predicts the same relationship to hold in the Australian institutional setting. The second objective of this study is to examine whether the method of reporting ESOs results in a statistically significant difference in the way in which investors account for them.

Contrary to the evidence provided by US studies, the results of the price and returns regressions indicate that Australian investors do not expense ESOs when valuing share prices. The results do not change when controlled for expected growth and quantity of ESOs granted, and therefore are consistent with the argument that the difference in value relevance is a result of discrepancies in accounting regulations.

 
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Created: Wed, 17 Nov 2010, 17:13:09 EST by Mr Kevin Liang on behalf of The University of Queensland Library