Fair-value analytical valuation of reset executive stock options consistent with IFRS9 requirements
نویسندگان
چکیده
منابع مشابه
Valuation of Executive Stock Options
It has been common practice to provide executives of firms with executive stock options as a part of the compensation package; such options are available both in US and Australia. These executive stock options are call options with additional restrictions. Until recently, the executive stock options were not required to be disclosed in the financial reports of the firms. But this has changed du...
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The cost of executive stock options to shareholders has become a focus of attention in ̄nance and accounting. The di±culty is that the value of these options depends on the exercise policies of the executives. Because these options are nontransferable, the usual theory does not apply. We analyze the optimal exercise policy for a utility-maximizing executive and indicate when the policy is chara...
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The concept of value is of great importance for investors. The goal of different groups of investors is always to maximize the value of their capital. The aim of this research is developing factors effective on securities in capital market in order to develop a paradigm for fair valuation that leads investors to make better decisions. To study fair value in a precise and comprehensive way, effe...
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Since executives typically receive new grants of stock options (ESOs) each year, longerserving executives often have portfolios of ESOs with differing strikes and maturities. Valuation models for stand-alone ESO grants have shown that trading restrictions, which force executives to bear unhedgeable risk until the options are exercised, induce earlier exercise and hence a lower cost to sharehold...
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The FASB has converged SFAS 123R with IFRS No.2, which simultaneously defines that the value of stock compensation is an expense under fair value method that must be recognized in the current statement of operations. However, under the fair value method, volatility of the market value of stock is easily subjected to the business cycle, political condition, managerial behavior, and macroeconomic...
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ژورنال
عنوان ژورنال: Annals of Actuarial Science
سال: 2020
ISSN: 1748-4995,1748-5002
DOI: 10.1017/s1748499519000125