option-based compensation in the U.S. pre and post the adoption of SFAS 123R.

• Main Authors: Shiau-Lan Su, 蘇筱嵐
• Other Authors: 詹佳縈
• Format: Others
• Language: en_US
• Published: 2009
• Online Access: http://ndltd.ncl.edu.tw/handle/89305555352071412148

碩士 === 元智大學 === 財務金融學系 === 97 === In this dissertation, we examine the impact of accounting reforms on employee stock options in relation to the operational and market performance. We investigate the change of executive compensation, the firm’s characteristics and firm’s performance around accounting reforms according to firms choice of either the intrinsic value method or the market value method to SFAS 123R. We find that firms with higher quality of corporate governance would have more incentives to early adopt the market value method, and when firms change the accounting principle from the intrinsic value method to the market value method, they would slash stock options grant due to the increasing compensation expense: in particular between 2002-2005, which was the period that firms voluntary to expensing stock options. We also find that firms adopted the intrinsic value method would perform worse after SFAS 123R; it may because those firms did not slash as much as enough stock options for the increasing compensation expense, and hence damage their operational performance. Additionally, we observe the short-run market reaction on announcement of SFAS 123R. Empirical findings also confirm that the firms which adopted the intrinsic value method would have more significantly negative abnormal returns in that period.