Simplifying share based payment accounting: The influence of FASB ASU No.2016-09 on earnings and cash flow volatility

In this study, we examine the influence of the adoption of Accounting Standard Update (ASU) No. 2016-09, Compensation- Stock Compensation (Topic 718): Improvement to Employee Share-based Payment Accounting, on earnings and cash flow volatility for firms that issue share-based compensation to employees.