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

Residual income valuation is based on the assumption that the clean surplusrelation holds. As pointed out by Ohlson (2000), among others, the standardclean surplus relation is frequently violated. Moreover, standard residualincome valuation models rest on the implicit assumption that future statedearnings belong to current shareholders only. This is clearly invalid for companiesgranting employee options...

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Year of publication:	2001-06-01
Authors:	Hess, Dirk ; Lüders, Erik
Institutions:	Zentrum für Europäische Wirtschaftsforschung <Mannheim>
Subject:	Vorzugsaktie \| Gewinnfeststellung \| clean surplus accounting \| Aktionär \| Generally Accepted Accounting Principles

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Extent:	216064 bytes 25 p. application/pdf
Series:	Corporate Finance Seminar - Veröffentlichungen ZEW Discussion Paper ; No. 01-42
Type of publication:	Book / Working Paper
Language:	English
Classification:	G12 - Asset Pricing ; M41 - Accounting ; Strategic management ; Financial theory ; Personnel psychology ; Individual Working Papers, Preprints ; No country specification
Source:	USB Cologne (business full texts)

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