Voluntary option expensing has been found to have which of the following effects?

Question

Quizplus · Accepted Answer

Studies have found that voluntary option expensing does not have a significant impact on share price. Option expensing is already factored into the market's expectation of a company's future earnings, so voluntarily expensing options does not provide new information that would affect share price. The use of LIFO or FIFO accounting does not have any relevance to the impact of voluntary option expensing on share price.

Voluntary Option Expensing Has Been Found to Have Which of the Following