The aim of this work is to analyze the critical issues related to stock options accounting granted to employees. Given the different ways to collect stock option plans, it follows that according to the accounting trea...The aim of this work is to analyze the critical issues related to stock options accounting granted to employees. Given the different ways to collect stock option plans, it follows that according to the accounting treatment adopted, it changes the financial reporting of stock option plans, and thus the information communicated to stakeholders and markets in general. The examination of the accounting treatment of stock options starts from the study of legal changes relating to the stock options and various criteria suggested will be presented for the evaluation of the options and for detection of their cost in the financial statements of companies （Guay, Kothari, ＆ Sloan, 2003）. After the analysis of international accounting standards issued by the International Accounting Standards Board （IASB） on the subject, specifically the ＂IFRS 2＂, we can state that they had a strong impact on Italian companies （Ciampaglia, 2008）. The central aspect of the study, however, consists of an analysis of the market effects of accounting for the cost associated with the issuance of stock option plans （Cerri ＆ Sottoriva, 2010）. Budgeted costs relating to the adoption of stock option plans granted to employees change the measures of economic performance of the enterprise, such as return on investment （ROI） and return on equity （ROE）, with significant effects on the evaluation of the economic capital of the company. A company that does not account for costs related to stock option plans recorded a best exercise, but it could distort the valuation of fmancial analysts （Tagliavini, 2000）. Finally, it can be observed that the proper accounting of costs associated with stock options is a prerequisite for the comparability of financial statements of companies that grant, and it is therefore necessary to adequately reflect the value of the company.展开更多
We focus on the asymptotic convergence behavior of the hedging errors of European stock option due to discrete hedging under stochastic interest rates. There are two kinds of BS-type discrete hedging differ in hedging...We focus on the asymptotic convergence behavior of the hedging errors of European stock option due to discrete hedging under stochastic interest rates. There are two kinds of BS-type discrete hedging differ in hedging instruments: one is the portfolio of underlying stock, zero coupon bond, and the money market account (Strategy BSI); the other is the underlying stock, zero coupon bond (Strategy BSII). Similar to the results of the deterministic interest rate case, we show that convergence speed of the discounted hedging errors is 1/2-order of trading frequency for both strategies. Then, we prove each of the BS-type strategy is not only locally optimal, but also globally optimal under the corresponding measure. Finally, we give some numerical examples to illustrate the results. All the discussion is based on non-arbitrage condition and zero transaction cost.展开更多
The unilateral disposition of stock rights＇ voting rights detracts from the welfare of the other shareholders. Contractual arrangements restricting or prohibiting the transfer of stock rights under the capital majori...The unilateral disposition of stock rights＇ voting rights detracts from the welfare of the other shareholders. Contractual arrangements restricting or prohibiting the transfer of stock rights under the capital majority rule may infringe upon shareholders＇ fight of withdrawal, further weakening stock market constraints on senior management and indirectly raising the agency cost of management abuse of power for private ends. In creating a legal structure for stock rights transfer, we need to find an appropriate balance between freedom of contract, capital majority rule and reduction of agency costs. Judges should determine that the transfer of voting rights is invalid in order to ensure that voting rights match residual claim rights and maintain the constraints on senior management represented by shareholder voting rights. The general prohibition of stock fights transfer in the articles of association blocks shareholders＇ right of withdrawal; this is not conducive to restraining potential abuses of power on the part of senior management and should be made invalid. Judges must differentiate between long- and short-term contracts and the initial and revised clauses of the articles of association in order to distinguish between the efficacy of different arrangements limiting transfer of stock rights as laid down in the articles of association.展开更多
文摘The aim of this work is to analyze the critical issues related to stock options accounting granted to employees. Given the different ways to collect stock option plans, it follows that according to the accounting treatment adopted, it changes the financial reporting of stock option plans, and thus the information communicated to stakeholders and markets in general. The examination of the accounting treatment of stock options starts from the study of legal changes relating to the stock options and various criteria suggested will be presented for the evaluation of the options and for detection of their cost in the financial statements of companies （Guay, Kothari, ＆ Sloan, 2003）. After the analysis of international accounting standards issued by the International Accounting Standards Board （IASB） on the subject, specifically the ＂IFRS 2＂, we can state that they had a strong impact on Italian companies （Ciampaglia, 2008）. The central aspect of the study, however, consists of an analysis of the market effects of accounting for the cost associated with the issuance of stock option plans （Cerri ＆ Sottoriva, 2010）. Budgeted costs relating to the adoption of stock option plans granted to employees change the measures of economic performance of the enterprise, such as return on investment （ROI） and return on equity （ROE）, with significant effects on the evaluation of the economic capital of the company. A company that does not account for costs related to stock option plans recorded a best exercise, but it could distort the valuation of fmancial analysts （Tagliavini, 2000）. Finally, it can be observed that the proper accounting of costs associated with stock options is a prerequisite for the comparability of financial statements of companies that grant, and it is therefore necessary to adequately reflect the value of the company.
基金supported by National Basic Research Program of China (Grant No.2007CB814905)
文摘We focus on the asymptotic convergence behavior of the hedging errors of European stock option due to discrete hedging under stochastic interest rates. There are two kinds of BS-type discrete hedging differ in hedging instruments: one is the portfolio of underlying stock, zero coupon bond, and the money market account (Strategy BSI); the other is the underlying stock, zero coupon bond (Strategy BSII). Similar to the results of the deterministic interest rate case, we show that convergence speed of the discounted hedging errors is 1/2-order of trading frequency for both strategies. Then, we prove each of the BS-type strategy is not only locally optimal, but also globally optimal under the corresponding measure. Finally, we give some numerical examples to illustrate the results. All the discussion is based on non-arbitrage condition and zero transaction cost.
基金an initial product(in Economic Law)of the Discipline Construction(Legal Science)Program in Shanghai universities
文摘The unilateral disposition of stock rights＇ voting rights detracts from the welfare of the other shareholders. Contractual arrangements restricting or prohibiting the transfer of stock rights under the capital majority rule may infringe upon shareholders＇ fight of withdrawal, further weakening stock market constraints on senior management and indirectly raising the agency cost of management abuse of power for private ends. In creating a legal structure for stock rights transfer, we need to find an appropriate balance between freedom of contract, capital majority rule and reduction of agency costs. Judges should determine that the transfer of voting rights is invalid in order to ensure that voting rights match residual claim rights and maintain the constraints on senior management represented by shareholder voting rights. The general prohibition of stock fights transfer in the articles of association blocks shareholders＇ right of withdrawal; this is not conducive to restraining potential abuses of power on the part of senior management and should be made invalid. Judges must differentiate between long- and short-term contracts and the initial and revised clauses of the articles of association in order to distinguish between the efficacy of different arrangements limiting transfer of stock rights as laid down in the articles of association.
