Market reactions to announcements to expense options

被引：0
|
作者：
Prather L.J. [1 ]
Chu T.-H. [2 ]
Bayes P.E. [2 ]
机构：
[1] John Massey School of Business, Southeastern Oklahoma State University, Durant
[2] College of Business and Technology, East Tennessee State University, Box 70686, Johnson City
来源：
Journal of Economics and Finance | 2009年 / 33卷 / 3期
关键词：
Mandatory expensing; Stock options;
D O I：
10.1007/s12197-008-9035-5
中图分类号：
学科分类号：
摘要：
The joint hypotheses of informationally efficient markets, transparent financial statements, and adequate accounting disclosure suggest that announcements of changes in the accounting treatment of employee stock options from footnote disclosure to expense recognition should not trigger stock price reactions because free-cash-flows will not change. Event study results from a sample of 241 firms that announce such changes reveal statistically significant negative price changes followed by positive price changes about equal in magnitude. We propose the learning, sophisticated investor, neglected firm, and firm size hypotheses to explain the observed announcement-period stock price reaction. © 2009 Springer Science+Business Media, LLC.
引用
收藏
页码：223 / 245
页数：22
相关论文
共 50 条
  • [1] The Options Market Reaction to Bank Loan Announcements
    Anagnostopoulou, Seraina C.
    Ferentinou, Aikaterini C.
    Tsaousis, Panagiotis A.
    Tsekrekos, Andrianos E.
    [J]. JOURNAL OF FINANCIAL SERVICES RESEARCH, 2018, 53 (01) : 99 - 139
  • [2] The options market response to accounting earnings announcements
    Truong, Cameron
    Corrado, Charles
    Chen, Yangyang
    [J]. JOURNAL OF INTERNATIONAL FINANCIAL MARKETS INSTITUTIONS & MONEY, 2012, 22 (03): : 423 - 450
  • [3] The Options Market Reaction to Bank Loan Announcements
    Seraina C. Anagnostopoulou
    Aikaterini C. Ferentinou
    Panagiotis A. Tsaousis
    Andrianos E. Tsekrekos
    [J]. Journal of Financial Services Research, 2018, 53 : 99 - 139
  • [4] Differential Market Reactions to Revenue and Expense Surprises
    Yonca Ertimur
    Joshua Livnat
    Minna Martikainen
    [J]. Review of Accounting Studies, 2003, 8 : 185 - 211
  • [5] Differential market reactions to revenue and expense surprises
    Ertimur, Y
    Livnat, J
    Martikainen, M
    [J]. REVIEW OF ACCOUNTING STUDIES, 2003, 8 (2-3) : 185 - 211
  • [6] Determinants of market reactions to restatement announcements
    Palmrose, ZV
    Richardson, VJ
    Scholz, S
    [J]. JOURNAL OF ACCOUNTING & ECONOMICS, 2004, 37 (01): : 59 - 89
  • [7] Discussion of "Differential market reactions to revenue and expense surprises"
    Berger, PG
    [J]. REVIEW OF ACCOUNTING STUDIES, 2003, 8 (2-3) : 213 - 220
  • [8] Discussion of “Differential Market Reactions to Revenue and Expense Surprises”
    Philip G. Berger
    [J]. Review of Accounting Studies, 2003, 8 : 213 - 220
  • [9] MARKET REACTIONS TO SHARE REPURCHASE ANNOUNCEMENTS IN MALAYSIA
    Isa, Mansor
    Lee, Siew-Peng
    [J]. ASIAN ACADEMY OF MANAGEMENT JOURNAL OF ACCOUNTING AND FINANCE, 2014, 10 (01): : 45 - 73
  • [10] The Oil Market Reactions to OPEC's Announcements
    Liu, Yue
    Dong, Hao
    Failler, Pierre
    [J]. ENERGIES, 2019, 12 (17)
12345