Stock price reaction and value relevance of recognition versus disclosure: The case of stock-based compensation

This study examines the equity price reaction to the pronouncements related to accounting for stock-based compensation and assesses the value relevance of recognition versus disclosure in financial reporting. We document that firms exhibit significant abnormal returns around the issuance of the Exposure Drafts proposing to require recognition of stock-based compensation costs, and also around the event reversing that decision to require disclosure only (while encouraging recognition). We also document that the abnormal returns are most pronounced for high-tech, high-growth, and start-up firms. Our results are consistent with the contracting theory, and show that disclosure is not a substitute for recognition. © 2002 Elsevier Science B.V. All rights reserved

Impact of IFRS adoption and corporate governance principles on transparency and disclosure: the case of Istanbul stock exchange

The beneficial consequences of reduction in asymmetric information through disclosure and the performance effects of International Financial Reporting Standards (IFRS) are well-established. However, whether disclosure quality indeed increases due to mandatory and voluntary regulation/best practices , such as the adoption of IFRS and Corporate Governance Principles is still an emprical question that hasn’t been directly tested. This paper tests this in an emerging market (EM where the infrastructure, dominant family ownership, and lax rules and implementation make it less likely for the disclosure quality effects to be observed. We show that Transparency & Disclosure (T&D) scores have improved during 2003-2005 in a sample of Istanbul Stock Exchange Index firmsand those who voluntarily adopted IFRS generally have significantly higher scores. However, the 2005 T&D scores for mandatory and voluntary adopters are not significantly different. Multivariate analysis shows that voluntary IFRS adoption, Corporate Governance (CG) principles, and mandatory IFRS adoption all increase financial disclosure and overall T&D scores. These findings should be of interest to researchers, policy makers, and regulators, especially in EMs that have recently started to adopt these best practice

The impact of IFRS adoption and corporate governance principles on transparency and disclosure: the case of Borsa Istanbul

This article investigates whether mandatory and voluntary regulation and best governance practices enhance disclosure quality in an emerging market where code law tradition, dominant family ownership, and lax rules and implementation make it less likely for disclosure quality effects to be observed. We show that the Transparency & Disclosure (T&D) scores have improved for a sample of Borsa Istanbul (BIST) firms, and the firms that voluntarily adopted IFRS during 2003 and 2004 have significantly higher scores. However, in 2005, the year IFRS became mandatory, the T&D scores for mandatory and voluntary adopters were no longer significantly different. Multivariate analysis shows that the Corporate Governance (CG) principles and voluntary and mandatory adoptions of IFRS have all had significant positive effects on various T&D scores of the sample firms

Two dimensional growth of ultrathin Fe films on BaTiO3 with sharp chemical interface

The Fe/BaTiO3 interface is a prototypical artificial multiferroic system displaying purely electronic magnetoelectric effects at room temperature. As magneto-electric coupling is essentially localized at the interface, the properties of the very first Fe layers in contact with BaTiO3 play a major role. In this paper, we investigate, by using X-ray photoemission spectroscopy and photoelectron diffraction, the in-situ growth, by molecular beam epitaxy, of ultrathin Fe films (7 monolayers) on a BaTiO3/SrTiO3(001) template. We found that growing the Fe films above room temperature (373 K) is essential in order to avoid island growth and obtain a continuous film. Post-annealing up to 473K improves the film crystallinity but prevents chemical interdiffusion and roughening. Just an interfacial monolayer of oxidized iron is detected in these conditions, which appears as an unavoidable consequence of the Fe/BaTiO3 chemical interaction. Its active role in magnetoelectric coupling must be carefully taken into account to correlate theoretical predictions and experiments