Markets; Study: expensing doesn't hurt stock.Just as the Financial Accounting Standards Board Financial Accounting Standards Board (FASB) Board composed of independent members who create and interpret Generally Accepted Accounting Principles (GAAP). (FASB FASB See: Financial Accounting Standards Board FASB See Financial Accounting Standards Board (FASB). ) issued its exposure draft on stock option expensing, Towers Perrin Towers Perrin is a global professional services firm. It was established 1 March 1934 as Towers, Perrin, Forster & Crosby. The umbrella name of Towers Perrin was adopted in 1987. released its findings of an event study that shows that a company's decision to expense stock options has no impact on stock price. The Towers Perrin study includes 335 companies that have elected to reflect option expense on their income statements. Tracking share prices on the day of company declarations, and during the 150 trading days In Business, the trading day is the time span that a particular stock exchange is open. For example, the New York Stock Exchange is, as of 2006, open from 09:30AM to 4:00PM. Trading days never take place on weekends. before and 150 trading days after, share performance remained the same, on average, as the 900 companies comprising S & P's 500 and Mid-Cap 400 indexes. |
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