Fully Diluted Earnings Per Share - Definition
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Fully Diluted Earnings Per Share The information content offully diluted earnings per share, Rice, S. J. (1978). Accounting Review, 429-438. This research investigates the impact on users of the requirement in APB Opinion 15 calling for reporting of fully diluted earnings per share amounts on income statements. Earningsmanagement through transaction structuring: Contingent convertible debt anddiluted earnings per share, Marquardt, C., & Wiedman, C. (2005). Journal of Accounting Research,43(2), 205-243. In this article, the authors examine whether firms structure their convertible bond transactions to manage diluted earnings per share (EPS). Findings are that the likelihood of firms issuing contingent convertible bonds (COCOs), which are often excluded from diluted EPS calculations under Statement of Financial Accounting Standard (SFAS) 128, is significantly associated with the reduction that would occur in diluted EPS if the bonds were traditionally structured. The authors also show that firms' use of EPSbased compensation contracts significantly affects the likelihood of COCO issuance. Shareprices and alternative measures ofearnings per share, Balsam, S., & Lipka, R. (1998). Accounting Horizons,12(3), 234. This paper examines the SFAS No. 128, Earnings Per Share and the way it changes. The paper also analyses the objectives of the FASB's. The authors observe that the market values earnings as a meaningful measure of performance. Furthermore, the new reporting combination of basic and diluted earnings per share explains stock prices as well as the old combination of primary and fully diluted earnings per share. These results suggest that the FASB has achieved its goals of simplification and harmonization with no reduction in usefulness. An empirical study on the impact ofearnings per shareon stock prices of a listed bank in Malaysia, Seetharaman, A., & Raj, J. R. (2011). The International Journal of Applied Economics and Finance,5(2), 114-126. This paper analyses investors, researchers and shareholders interest in the impact of an announcement of Earnings per Share (EPS) on stock prices. Therefore, in this research paper, an investigation and evaluation has been performed to indicate the impact of EPS on the stock prices of Public Bank Berhad, a listed bank in Malaysia. The aim of the study was to investigate whether there is any correlation between Public Bank Berhads EPS and it a stock price for a relatively long time period of 19 years. Evidence on the usefulness of alternativeearnings per sharemeasures, Jennings, R., LeClere, M. J., & Thompson Jr, R. B. (1997). Financial Analysts Journal,53(6), 24-33. This paper analyses the impact of the new standard imposed on the EPS by the Financial Accounting Standards Board in February 1997, adopted new reporting rules for earnings per share on investors. Common stock equivalents,earnings per share, and stock valuation, Bierman Jr, H. (1986). Journal of Accounting, Auditing & Finance,1(1), 62-70. This paper deals with how the primary earnings per share should be affected by common stock equivalents. The author proposes two different questions and provides answers on them. He recommends present disclosure of future distribution on a pro forma basis. Dilutionofearnings per sharein an option pricing framework, Vigeland, R. L. (1982). Accounting Review, 348-357. This paper analyses the currently prescribed method of dealing with potentially dilutive securities in earnings per share calculations in light of the more recent development of equilibrium pricing models for options and convertible securities. The paper proposes that the assessments of the probabilities of future stock prices reaching levels which would allow conversion or exercise can be derived from a widely used stochastic model of security price behavior. Some implications for policy are discussed. Earnings dilutionand the explanatory power ofearningsfor returns, Huson, M. R., Scott, T. W., & Wier, H. A. (2001). The Accounting Review,76(4), 589-612. Earnings per sharereporting: Time for an overhaul?, Mautz Jr, R. D., & Hogan, T. J. (1989). Accounting Horizons,3(3), 21. This paper proposes that earnings per share (EPS) reporting standards are deficient and sets forth a proposal to modify these standards. Employee stock options, EPSdilution, and stock repurchases, Bens, D. A., Nagar, V., Skinner, D. J., & Wong, M. F. (2003). Journal of Accounting and Economics,36(1-3), 51-90. This paper investigates whether corporate executives stock repurchase decisions are affected by their incentives to manage diluted earning per share (EPS). Results show that executives repurchase decisions are not associated with actual employee stock options (ESO) exercises, suggesting that they are driven by incentives to manage diluted but not basic EPS, thus strengthening the authors earnings management interpretation. How aboutearnings per share?, Boyer, P. A., & Gibson, C. H. (1979). The CPA Journal (pre-1986),49(000002), 36. The objective of this article is to study the usefulness of earnings per data share. This will be accomplished by reviewing the development of the current earnings per share computations, by examining the reporting of earnings per share data by the financial services, and by a survey of the comprehension of earnings per share by finance oriented users of accounting information. The economicdilutionof employee stock options:DilutedEPS for valuation and financial reporting, Core, J. E., Guay, W. R., & Kothari, S. P. (2002). The Accounting Review,77(3), 627-652. In this paper, the authors derive a measure of diluted EPS that incorporates the economic implications of the dilutive effects of employee stock options. The paper shows that the existing FASB treasury-stock method of accounting for the dilutive effects of outstanding options systematically understates the options' dilutive effect, and thus overstates reported EPS. This is achieved using firm-wide data on 731 employee stock option plans. The information content of fullydiluted earnings per share, Rice, S. J. (1978).Accounting Review, 429-438. This research is undertaken to investigate the impact on users of the requirement in APB Opinion 15 calling for reporting of fully diluted earnings per share amounts on income statements.