We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
Adding Value Through Accounting Signals.
- Authors
Wallace, Wanda A.
- Abstract
This article focuses on changes in accounting standards related to the expensing of stock options in the face of income statements, and the accounting treatment of special purpose entities (SPEs). SPEs have become recognized by accounting standard setters as part of a transactions class known as variable interest entities (VIEs). Questions from the financial press are explored as well as the signals that are sent by adopting these accounting changes. The author analyzes firms adopting the expensing of stock options and those choosing to disclose the nature of the VIEs, noting the benefits derived from signaling more transparent financial reporting. An analysis of the 731 companies recording 919 restatements is provided. The added value for stockholders of the restating firms are assessed.
- Subjects
ACCOUNTING standards; DISCLOSURE; INVESTOR relations (Corporations); BUSINESS valuation; CORPORATE public relations; FINANCIAL statements; CORPORATE image; STOCKHOLDERS; CORPORATION reports; OFF balance sheet financing; VARIABLE interest rates; FINANCIAL disclosure
- Publication
California Management Review, 2004, Vol 46, Issue 4, p120
- ISSN
0008-1256
- Publication type
Article
- DOI
10.2307/41166278