Abstract
A large number of US companies seem, almost miraculously, to have granted options on dates that coincided with low stock prices. Scholars have documented a pattern of sharp stock appreciation after executives had received stock grants. The pattern suggests that back-dating has occurred. This paper examines whether firms that have restated suspect earnings (we exclude restatements due to backdating) are more likely than non-restaters either to have admitted to back-dating options or to be at risk of being back-daters. We find that both Fortune 500 and non-Fortune 500 restating firms are more likely to be actual back-daters than non-restating firms. Fortune 500 restaters are also more likely to be potential back-daters.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
