12.07.2015 Views

Abstract - Quest for Global Competitiveness - Universidad de Puerto ...

Abstract - Quest for Global Competitiveness - Universidad de Puerto ...

Abstract - Quest for Global Competitiveness - Universidad de Puerto ...

SHOW MORE
SHOW LESS
  • No tags were found...

You also want an ePaper? Increase the reach of your titles

YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.

Semerdzhian (2004) found that certain firms such as Dell, Yahoo and Citigroup,among others, started to limit the number of employees who can receive options.Carter, Lynch and Tuna (2007) observed an increase in the use of restrictedstock and/or per<strong>for</strong>mance stock awards.Weisbenner (2001, 2004) and Carter, Lynch and Tuna (2007) have predicted thatmandatory option expensing will cause firms to stop awarding new option grantsand replace (options) with shares of restricted stock that vest over time. Thisleads to the following research questions.RQ1: How many of the Announcing firms will report significant changes intheir Equity compensation plans after the implementation of the new accountingstandard (SFAS No. 123-R) requiring the expensing of stock options?RQ2: What type of significant changes will be ma<strong>de</strong> by the Announcingfirms to their Equity compensation plans?RQ3: How many of the Matching firms will report significant changes intheir Equity compensation plans after the implementation of the new accountingstandard (SFAS No. 123-R) requiring the expensing of stock options?RQ4: What type of significant changes will be ma<strong>de</strong> by the Matching firmsto their Equity compensation plans?This investigation consi<strong>de</strong>rs that significant changes in a firm’s Equitycompensation plan inclu<strong>de</strong>, but are not necessarily limited to, a change in thetype of employees eligible to receive stock option grants, changing the criteria tobecome eligible to receive stock options, e.g. per<strong>for</strong>mance-based, replacingstock options <strong>for</strong> some other type of stock award, changing the option valuationmo<strong>de</strong>l, reducing the number of options granted each year, changing the type of10

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!