Accounting for Stock-Based Compensation: An Extended Clean Surplus Relation


Hess, Dirk ; Lüders, Erik


[img]
Preview
PDF
dp0142.pdf - Published

Download (216kB)

URL: http://ub-madoc.bib.uni-mannheim.de/473
URN: urn:nbn:de:bsz:180-madoc-4736
Document Type: Working paper
Year of publication: 2001
Publication language: English
Institution: Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series: Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 330 Economics
Classification: JEL: M41 G12 ,
Subject headings (SWD): Deutschland , USA , Generally Accepted Accounting Principles , Nettoverdienst
Abstract: Residual income valuation is based on the assumption that the clean surplus relation holds. As pointed out by Ohlson (2000), among others, the standard clean surplus relation is frequently violated. Moreover, standard residual income valuation models rest on the implicit assumption that future stated earnings belong to current shareholders only. This is clearly invalid for companies granting employee options. In order to overcome these deficiencies, this paper establishes an extension of the clean surplus relation and derives simple analytical solutions for the value of outstanding stocks in terms of already known accounting information.
Additional information:

Das Dokument wird vom Publikationsserver der Universitätsbibliothek Mannheim bereitgestellt.




+ Citation Example and Export

Hess, Dirk ; Lüders, Erik (2001) Accounting for Stock-Based Compensation: An Extended Clean Surplus Relation. Open Access [Working paper]
[img]
Preview


+ Search Authors in

+ Download Statistics

Downloads per month over past year

View more statistics



You have found an error? Please let us know about your desired correction here: E-Mail


Actions (login required)

Show item Show item