Value Relevance of the Stock Options Disclosure or Reporting

Berthelot, Sylvie; Morris, Tania; Desfleurs, Aurélie

doi:10.2139/ssrn.1327516

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Value Relevance of the Stock Options Disclosure or Reporting

CAAA Annual Conference 2009 Paper

32 Pages Posted: 14 Jan 2009

See all articles by Sylvie Berthelot

Aurélie Desfleurs

Département des sciences comptables et de fiscalité

Date Written: January 13, 2009

Abstract

This study investigates the relation between share price, stock-based compensation expense and information about employee stock options (ESO) disclosed in financial statement footnotes. Our results, for a sample of 750 observations over the period 2000-2005, suggest that the market values both the stock-based compensation expense recognized in financial statement and information about ESO disclosed in footnotes, but that ESO recognition in income statement or the pro forma disclosure showing the impact of expensing ESO on net income, are not as value relevant as the information disclosed in footnotes.

Note: Downloadable Document is in French.

Keywords: Stock options, value-relevance of the information, financial markets, accounting standard

JEL Classification: M41

Suggested Citation: Suggested Citation

Berthelot, Sylvie and Morris, Tania and Desfleurs, Aurélie, Value Relevance of the Stock Options Disclosure or Reporting (January 13, 2009). CAAA Annual Conference 2009 Paper, Available at SSRN: https://ssrn.com/abstract=1327516 or http://dx.doi.org/10.2139/ssrn.1327516