Show simple item record

dc.contributor.authorMoellenberndt, Richard; Martin, Jamesen_US
dc.dateAugust 2007en_US
dc.date.accessioned2014-11-14en_US
dc.date.accessioned2018-11-02T14:38:13Z
dc.date.available2014-11-14en_US
dc.date.available2018-11-02T14:38:13Z
dc.identifier.otherSchool of Business Working Paper Series; No. 84en_US
dc.identifier.urihttps://wuir.washburn.edu/handle/10425/223
dc.description.abstractStock options are a major component of executive pay in America today. With this popularity comes opportunities for individuals to improperly enrich themselves through manipulation of key dates related to the stock options (backdating). At this date, over 150 publicly traded companies are under investigation for the improper backdating of stock options. The first section of this paper illustrates stock option mechanics 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, sharehold proxies, and income tax compliance. The second section of the paper identifies commonalities associated with companies under investigation for backdated stock options. This involves an analysis of external auditors, SIC codes, corporate headquarter location and company compliance with Section 404 of the Sarbanes-Oxley Act. The final section of the paper analyzes capital market reaction to companies under investigation for backdating stock options. The analysis identifies a clear stock price underperformance of those investigating 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 coefficient for companies investigating the backdating of stock options.en_US
dc.format.mediumPDFen_US
dc.language.isoEngen_US
dc.publisherWashburn University, School of Businessen_US
dc.subjectAccountingen_US
dc.subjectBackdated stock optionsen_US
dc.subjectCapital marketsen_US
dc.subjectCorporation and securities lawen_US
dc.subjectStock optionsen_US
dc.titleBackdated Stock Options: Crosscurrents from GAAP to the Capital Marketsen_US
dc.typeWorking paperen_US
washburn.identifier.cdm155en_US
washburn.identifier.oclc235272774en_US
washburn.source.locationen_US


Files in this item

Thumbnail

This item appears in the following Collection(s)

Show simple item record