Issue Information

Published date01 May 2017
Date01 May 2017
VOLUME 28, NUMBER 4 • May/June 2017
The Journal of
Letter From the Editor
James B. Edwards
The FASB Simplifies the Accounting for Share Based Payments
Nancy Nichols, Luis Betancourt, and Irana Scott
In this article, the authors explain the FASB’s recently issued simplifications to accounting for
share-based payments. The areas of simplification include accounting for income taxes and
award forfeitures and providing flexibility in statutory tax rates to meet withholding require-
ments. The authors provide examples of the revised accounting entries and examine the
impact of the change in accounting for income taxes on the seven largest U.S. companies.
With an effective date for years beginning after December 15, 2016, corporate accoun-
tants and financial executives need to understand the financial reporting implications of the
changes that will add volatility to reported income tax expense, earnings, and effective tax
rates of companies that rely heavily on share-based payments.
How Would the Stock Exchange Monitoring Role Affect the Performance of U.S. Firms:
Evidence From Cross-Listed Firms in the United States
Enas A. Hassan
Stock exchanges perform governance activities, among these activities, monitoring is con-
sidered as one of the stock exchanges most distinctive and important activities, since it
increases shareholders’ ability to evaluate managerial performance, and put in place effective
managerial incentive schemes; yet little research attention has focused on the effects of stock
exchanges as an external mechanism on firm performance. This article provides empirical
evidence on whether stock exchange monitoring is successful. Using a comprehensive mea-
sure comprising a range of stock exchange monitoring factors suggested by prior literature
as important determinants of stock exchange monitoring role, the results indicate that the
strength of stock exchange monitoring is positively associated with firm performance as
measured by return on assets, return on equity and Tobin’s Q. A more comprehensive analy-
sis provides additional evidence suggests that U.S. firms are more likely to be influenced by
U.S. stock exchanges monitoring than their non-U.S. counterparts and the incremental legal

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