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However, previous studies have indicated that stock options may engender manager-shareholder conflicts Jensen, and create incentives for earnings management e. Jensen, Murphy and Wruck, ; Burns and Kedia, ; Efendi, Srivastava and Swanson, Therefore, this paper examines the implications of stock option grants on earnings management.

In particular, we address the following question: Does stock options grant induce incentives for earnings management?

Relationship between Executive Stock Option Exercises and Earnings Management - Lee - - Asia-Pacific Journal of Financial Studies - Wiley Online Library

Using a sample of 33 non-financial listed Portuguese firms-year from to , we find that managers are more likely to engage in earnings management when they hold stock options. This study suggests that stock options may not always be effective in aligning the interests of managers and shareholders. Rather, executive stock options seem to affect the informational quality of earnings negatively, and consequently reduce the quality and value relevance of published financial data.

En particular, planteamos la siguiente pregunta: De facto, las opciones sobre acciones parecen afectar negativamente la calidad de los resultados y, consecuentemente reducen la calidad y relevancia de los estados financieros publicados.

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JavaScript is disabled on your browser. Please enable JavaScript to use all the features on this page. Revista de Contabilidad Volume 15, Issue 2 , July—December , Pages open access. Author links open the author workspace.

Under a Creative Commons license. Palabras clave Opciones sobre acciones.

Stock Option Compensation and Earnings Management IncentivesJournal of Accounting, Auditing & Finance - Terry Baker, Denton Collins, Austin Reitenga,

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