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Do investors value disclosed versus recognised employee share options differently?

Ang, Hong Nee and Pinnuck, Matthew 2010, Do investors value disclosed versus recognised employee share options differently?, in AFAANZ 2010 : Accounting and Finance Association of Australia and New Zealand Annual Conference, AFAANZ, [Christchurch, New Zealand], pp. 1-40.

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Title Do investors value disclosed versus recognised employee share options differently?
Author(s) Ang, Hong Nee
Pinnuck, Matthew
Conference name Accounting and Finance Association of Australia and New Zealand. Conference (2010 : Christchurch, New Zealand)
Conference location Christchurch, New Zealand
Conference dates 4-6 July 2010
Title of proceedings AFAANZ 2010 : Accounting and Finance Association of Australia and New Zealand Annual Conference
Editor(s) [Unknown]
Publication date 2010
Conference series Accounting and Finance Association of Australia and New Zealand Conference
Start page 1
End page 40
Publisher AFAANZ
Place of publication [Christchurch, New Zealand]
Keyword(s) disclosure versus recognition
employee share options
market valuation
reliability of accounting information
sophistication of investors
salience of disclosure
Summary Prior research provides evidence consistent with footnote disclosures are being valued by investors. However, there are arguments as to whether the market would acquire and/or process disclosed versus recognised information in the same way. Prior studies have been inconclusive on the findings. This research provides evidence for the conditions under which differential valuation exist. Three factors are examined. First, I investigate whether the differential valuation is related to the reliability of the accounting estimates. Second, due to higher processing costs on disclosures relative to “recognised” information, I investigate whether sophistication of investors contributes to the differential valuation. Finally, I examine systematic biases arisen from how investors process information due to limited attention paid to disclosures. The results show that the market does process information in a complicated way. Investors discern the reliability of accounting estimates and value them differently when processing the information.
Language eng
Field of Research 150199 Accounting, Auditing and Accountability not elsewhere classified
Socio Economic Objective 970114 Expanding Knowledge in Economics
HERDC Research category E1.1 Full written paper - refereed
Copyright notice ©2010, AFAANZ
Persistent URL http://hdl.handle.net/10536/DRO/DU:30035841

Document type: Conference Paper
Collection: School of Accounting, Economics and Finance
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Created: Mon, 27 Jun 2011, 10:53:14 EST by Leanne Swaneveld

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