Disclosed Values of Option-Based Compensation - Incompetence, Deliberate Underreporting or the Use of Expected Time to Maturity?

OPEN ARCHIVE

Union Jack
Dannebrog

Disclosed Values of Option-Based Compensation - Incompetence, Deliberate Underreporting or the Use of Expected Time to Maturity?

Show simple item record

dc.contributor.author Bechmann, Ken L. en_US
dc.contributor.author Hjortshøj, Toke L. en_US
dc.date.accessioned 2009-02-04T10:26:14Z
dc.date.available 2009-02-04T10:26:14Z
dc.date.issued 2008-05-16T00:00:00Z en_US
dc.identifier.uri http://hdl.handle.net/10398/7143
dc.description.abstract New accounting standards require ¯rms to expense the costs of option-based compensation (OBC), but the associated valuations o®er many challenges for ¯rms. Earlier research has documented that ¯rms in the U.S. generally underreport the values of OBC by manipulating the inputs used for valuation purposes. This paper examines the values of OBC disclosed by Danish ¯rms. The results suggest that ¯rms experi ence some di±culties in valuing OBC, but interestingly, there is no clear evidence of deliberate underreporting. For example, there is no evidence that ¯rms use manipulated values for the Black-Scholes parameters in their valuations. Furthermore, ¯rms determine the expected time to maturity in a way that is generally consistent with the guidelines provided by the new accounting standards. The ¯ndings di®er from those of the U.S., but is consistent with the more limited use of OBC and the lower level of attention paid to these values in Denmark. However, the di®erences can also be due to the fact that several Danish ¯rms do not provide the information required regarding their OBC, which is clearly a very e®ective way of hiding the true values. en_US
dc.format.extent 34 s. en_US
dc.language eng en_US
dc.relation.ispartofseries Working paper;2007-25 en_US
dc.title Disclosed Values of Option-Based Compensation - Incompetence, Deliberate Underreporting or the Use of Expected Time to Maturity? en_US
dc.type wp en_US
dc.accessionstatus modt08maj16 nijemo en_US
dc.contributor.corporation Copenhagen Business School. CBS en_US
dc.contributor.department Institut for Finansiering en_US
dc.contributor.departmentshort FI en_US
dc.contributor.departmentuk Department of Finance en_US
dc.contributor.departmentukshort FI en_US
dc.idnumber x656556934 en_US
dc.publisher.city København en_US
dc.publisher.year 2007 en_US


Creative Commons License This work is licensed under a Creative Commons License.

Files Size Format View
2007_25.pdf 339.1Kb PDF View/Open

This item appears in the following Collection(s)

Show simple item record