... proportion of option compensation. My paper differs in three ways. First, I examine the terms of compensation contracts EFFECTS OF RECOGNITION VERSUS DISCLOSURE ON THE STRUCTURE AND FINANCIAL ... both real actions and financial reporting decisions in the context of recognition and disclosure. Examples of the former include Imhoff and Thomas [1988] and Mittelstaedt, Nichols, and Regier ... 9 the recognition of those values on the face of financial statements. In these settings, disclosure provides a different quantity and quality of information. In contrast, the evolution of...