Issue Information

• Published date: 01 May 2017
• Date: 01 May 2017
• DOI: http://doi.org/10.1002/jcaf.22226

VOLUME 28, NUMBER 4 • May/June 2017

The Journal of

Letter From the Editor

James B. Edwards

Features

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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