Does backdating explain the stock price pattern around executive stock option grants?

• 成果类型: Article
• 署名作者: Heron, Randall A.; Lie, Erik
• 署名单位: University of Iowa; Indiana University System; Indiana University Indianapolis; IU Kelley School of Business
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2005.12.003
• 发表日期: 2007
• 页码: 271-295
• 关键词: executive stock option grants; Backdating

摘要

Extant studies show that stock returns are abnormally negative before executive option grants and abnormally positive afterward. We find that this return pattern is much weaker since August 29, 2002, when the Securities and Exchange Commission requirement that option grants must be reported within two business days took effect. Furthermore, in those cases in which grants are reported within one day of the grant date, the pattern has completely vanished, but it continues to exist for grants reported with longer lags, and its magnitude tends to increase with the reporting delay. We interpret these findings as evidence that most of the abnormal return pattern around option grants is attributable to backdating of option grant dates. (c) 2006 Elsevier B.V. All rights reserved.