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dc.contributor.authorHess, Dieter E.en_US
dc.contributor.authorLüders, Eriken_US
dc.description.abstractSeveral studies indicate that stock option plans are becoming more and more a substantial part of compensation schemes in U.S. companies. This paper shows the tax implications and accounting rules for stock option plans. By comparison of the tax and accounting rules for different compensation schemes we show that the popularity of stock options may be mainly due to the U.S. Generally Accepted Accounting Principles (US-GAAP) which require no charge to earnings for speciffically designed stock option plans if a company opts for footnote disclosure. Thus, for these companies the stated earnings are higher than their economical situations justify. Based on a case study of 20 companies out of the S&P 500 which rely heavily on employee stock options we arrive at the conclusion that the amount of hidden compensation cost can reach economically signifficant amounts. Since this topic seems to be widely neglected it is questionable whether stock prices reflect these hidden cost.en_US
dc.publisherZentrum für Europäische Wirtschaftsforschung (ZEW) Mannheimen_US
dc.relation.ispartofseriesZEW Discussion Papers 00-39en_US
dc.subject.keywordstock option programsen_US
dc.subject.stwLeistungsorientierte Vergütungen_US
dc.subject.stwGrundsätze ordnungsmäßiger Buchführungen_US
dc.subject.stwVerdeckte Gewinnausschüttungen_US
dc.subject.stwhidden compensationen_US
dc.titleNew economy accounting : why are broad-based stock option plans so attractive?en_US
dc.typeWorking Paperen_US
Appears in Collections:ZEW Discussion Papers, Zentrum für Europäische Wirtschaftsforschung (ZEW)
Publikationen von Forscherinnen und Forschern des Zentrums für Europäische Wirtschaftsforschung (ZEW)

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