The Transparency of Executive Stock Option Disclosures In Australian Annual Reports
Author(s)
Nelson, Jodie
Percy, Majella
Griffith University Author(s)
Year published
2005
Metadata
Show full item recordAbstract
We investigate the transparency of executive stock option disclosures of Australian firms for the financial years 2000 and 2002. Transparency is measured using an index based on the requirements of the accounting standards dealing specifically with the disclosure of executive stock options. Our study also examines the relationship between firm characteristics and disclosure transparency and the difference in transparency between 2000 and 2002. We find that the transparency of executive stock option disclosures is low but improves a little in the year 2002. We also find that the existence of a compensation committee is ...
View more >We investigate the transparency of executive stock option disclosures of Australian firms for the financial years 2000 and 2002. Transparency is measured using an index based on the requirements of the accounting standards dealing specifically with the disclosure of executive stock options. Our study also examines the relationship between firm characteristics and disclosure transparency and the difference in transparency between 2000 and 2002. We find that the transparency of executive stock option disclosures is low but improves a little in the year 2002. We also find that the existence of a compensation committee is positively associated with transparency with size being the only significant control variable. Our results are consistent with the contention of Hope (2003a) that managers of firms appear to be treating mandatory requirements as voluntary, possibly due to the low levels of enforcement of the accounting standards.
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View more >We investigate the transparency of executive stock option disclosures of Australian firms for the financial years 2000 and 2002. Transparency is measured using an index based on the requirements of the accounting standards dealing specifically with the disclosure of executive stock options. Our study also examines the relationship between firm characteristics and disclosure transparency and the difference in transparency between 2000 and 2002. We find that the transparency of executive stock option disclosures is low but improves a little in the year 2002. We also find that the existence of a compensation committee is positively associated with transparency with size being the only significant control variable. Our results are consistent with the contention of Hope (2003a) that managers of firms appear to be treating mandatory requirements as voluntary, possibly due to the low levels of enforcement of the accounting standards.
View less >
Journal Title
Financial Reporting, Regulation and Governance
Volume
4
Issue
2
Publisher URI
Subject
Auditing and Accountability
Accounting, Auditing and Accountability