Expensing Stock Options: A Fair-Value Approach

Robert S. Kaplan; Krishna G. Palepu

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Article | Harvard Business Review | December 2003

Expensing Stock Options: A Fair-Value Approach

by Robert S. Kaplan and Krishna G. Palepu

Keywords: Stock Options; Value;

Format: Print

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Citation:

Kaplan, Robert S., and Krishna G. Palepu. "Expensing Stock Options: A Fair-Value Approach." Harvard Business Review 81, no. 12 (December 2003).

About the Authors

Robert S. Kaplan

Senior Fellow, Marvin Bower Professor of Leadership Development, Emeritus

Accounting and Management

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Krishna G. Palepu

Ross Graham Walker Professor of Business Administration

Accounting and Management

General Management

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Case | HBS Case Collection | March 2017 (Revised March 2019)

Ant Financial (A)

Feng Zhu, Ying Zhang, Krishna G. Palepu, Anthony K. Woo and Nancy Hua Dai

Headquartered in Hangzhou (China), Ant Financial has grown into a fintech “Unicorn.” The fintech empire that the company established spanned verticals such as mobile and online payment (Alipay), money market fund (Yu’e Bao), wealth management (Ant Fortune), digital-only banking (MYbank), credit scoring (Zhima Credit), and consumer credit portal (Ant Credit Pay) among others. After another sales record during the 2016 11.11 Global Shopping Festival along with Alibaba, Long Chen, chief strategy officer of Ant Financial, was contemplating the various opportunities and challenges associated with the firm’s international expansion, inclusive finance in rural regions, and regulatory uncertainties.

Keywords: Growth and Development Strategy; Global Strategy; Finance; Opportunities; Financial Services Industry; Technology Industry;

Citation:
Zhu, Feng, Ying Zhang, Krishna G. Palepu, Anthony K. Woo, and Nancy Hua Dai. "Ant Financial (A)." Harvard Business School Case 617-060, March 2017. (Revised March 2019.) View Details

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Teaching Note | HBS Case Collection | March 2019

Ant Financial (A), (B), and (C)

Feng Zhu, Krishna G. Palepu, Kerry Herman and Susie Ma

Citation:
Zhu, Feng, Krishna G. Palepu, Kerry Herman, and Susie Ma. "Ant Financial (A), (B), and (C)." Harvard Business School Teaching Note 619-030, March 2019. View Details

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Article | Mayo Clinic Proceedings: Innovations, Quality & Outcomes | March 2019

A Time-Driven Activity-Based Costing Analysis of Emergency Department Scribes

Robert S. Kaplan, Heather A. Heaton, David M. Nestler, William J. Barry, Richard A. Helmers, Mustafa Y. Sir, Deepi G. Goyal, Derek A. Haas and Annie T. Sadosty

Objectives: To apply time-driven activity-based costing (TDABC) methodology to determine emergency medicine physician documentation costs with and without scribes.

Methods: Two research assistants shadowed attending physicians for a total of 64 hours in the adult emergency department. A tablet-based time recorded was used to obtain estimates for physician documentation time on both control (no scribe) and intervention (scribe) shifts.

Results: Control shifts yielded approximately 3 hours of documentation time per 8 hours of clinical time. When paired with a scribe, attending physician documentation decreased to 1 hour and 45 minutes during a shift and 15 minutes of post-shift documentation. The physician cost estimate for documentation without and with a scribe is 644 and 488 dollars, respectively.

Conclusions: TDABC methodology demonstrated that scribes afford a cost-effective solution to ED clinical documentation. The costing approach enables clinicians to understand utilization and cost of medical resource at a more granular level.

Keywords: Time-Driven Activity-Based Costing; Health Care and Treatment; Analysis;

Citation:
Kaplan, Robert S., Heather A. Heaton, David M. Nestler, William J. Barry, Richard A. Helmers, Mustafa Y. Sir, Deepi G. Goyal, Derek A. Haas, and Annie T. Sadosty. "A Time-Driven Activity-Based Costing Analysis of Emergency Department Scribes." Mayo Clinic Proceedings: Innovations, Quality & Outcomes 3, no. 1 (March 2019): 30–34. View Details

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Expensing Stock Options: A Fair-Value Approach

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