PURPOSE – This study aims to investigate the post-implementation impact of expensing share-based
payment transactions on basic earnings per share. In recent years, IFRS 2 was one of the most opposed
and controversial standards issued by the IASB.
DESIGN / METHODOLOGY / APPROACH – The sample relates to the period immediately after
implementation (2006-2009) and consists of the 531 firm-year observations where share-based
payments were present among Johannesburg Stock Exchange listed companies. The effect of
share-based payments on basic earnings per share is assessed.
FINDINGS – The findings of this study show a statistically significant impact on basic earnings per
share, but the results are more modest than suggested by prior studies. The number of companies
reporting a share-based payment expense increased over the five-year period 2005-2009.
ORIGINALITY / VALUE – The introduction of IFRS 2 caused small but not necessarily immaterial changes
to the income profile of companies. This is important for analysts and general users of financial
information who need to be aware of these changes. The results also suggest that IFRS 2 did not
merely cause accounting policy changes, but has impacted on the way share-based payment
transactions are used by companies.
Cronje, Tom; De Beer, Johan(Virtus Enterpress, 2010-05)
Previous research findings indicate that the relevant performance of firms is one way or
another, reflected in the market prices of shares. Such research is focussed on different
performance components of firm individual ...
Stadler, Jonathan James(University of Pretoria, 2012-08-15)
From the early 1990s, rates of HIV infection increased dramatically in South Africa and by the early 2000s, AIDS emerged as the main cause of death for adult South Africans. During the first half of the 2000s, the South ...
Smit, C.J.B.; Ward, Michael(Investment Analysts Society of Southern Africa, 2007)
A KPMG survey in London found that 53% of mergers
and acquisitions destroy shareholder value (Brewis,
2000). Andrade, Mitchell and Stafford (2001) state that
two of the main objectives in corporate finance
research are ...