Market Reaction to Announcements of Share-Based Payment
Tóm tắt
Taiwan’s Financial Accounting Standard does not align regulations with International Accounting Standards (IAS) in treatment of stock bonus paid to employees before 2008. IAS treats stock compensation as expense but Taiwan-listed companies recognized share-based compensation awards as allocation of retained earnings before 2008. To align with IAS, Taiwan’s SFAS No. 39 provides an accounting standard for employee stock bonuses by recognizing expenses to reflect the real value of the income statement and firm’s earnings. SFAS no. 39 will affect accounting earnings, and supposedly, the stock prices for listed firms in Taiwan. This paper examines market reactions to the announcement of SFAS no. 39. Our empirical results show that stock prices reacted significantly and negatively to announcement of SFAS No. 39 during the announcement period.
Tài liệu tham khảo
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