Study 3 examines changes in options backdating behavior to two accounting events during the post-Sarbanes Oxley Act (qSOXq) period. During this time, the FASB added stock options expensing to its agenda (qevent 1q) and eventually issued the options expensing accounting standard and implemented it (qevent 2q). I find a statistically significant decrease in options backdating behavior toward both events. (Abstract shortened by UMI.)It provides two benefits, firstly, the lower exercise price allows the option recipient to potentially realize larger eventual gains and, secondly, the backdating characterizes the options as having been granted aquot;at-the-moneyaquot;. At-the- money anbsp;...
|Title||:||Essays on Stock Options Expensing and Stock Options Backdating|
|Publisher||:||ProQuest - 2008|