出版社：LLC “Consulting Publishing Company “Business Perspectives”
摘要：Stock options are a major component of executive pay in America today.With this popularity opportunities come for individuals to improperly enrich themselves through manipulation of key dates related to the stock options(backdating).At this date,over 150 publicly traded compa?nies are under investigation for the improper backdating of stock options.The first section of this paper analyzes the stock option from an operating perspective and outlines the prior and current accounting treatment of stock options.It also summarizes recent related legal activity and recent academic research.The paper then analyzes the impact of backdating on financial reports,share?holder proxies,and income tax compliance.The second section of the paper identifies commonal?ities associated with companies under investigation for backdated stock options.This involves an analysis of company size,institutional stockholders,external auditors,company SIC code,corpo?rate headquarter location,and compliance with Section 404 of the Sarbanes Oxley Act.The final section of the paper analyzes capital market reaction to companies under investigation for backdat?ing stock options.The analysis identifies a clear stock price underperformance of those investigat?ing companies when compared to a peer group.It also identifies a drop in the observed price earnings ratio when compared to the same peer group as well as a decrease in the average beta coeffi?cient for companies investigating the backdating of stock options.Finally,the paper identifies a pronounced increase in insider selling in those companies investigating backdated stock options.
