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

Journal of Financial Economics

Volumn 83, Issue 2, 2007, Pages 271-295

  Heron, Randall A ^a   Lie, Erik ^b  

^a INDIANA UNIVERSITY   (United States)

^b UNIVERSITY OF IOWA   (United States)

Author keywords

Backdating; Executive stock option grants

Indexed keywords

EID: 33846502600     PISSN: 0304405X     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.jfineco.2005.12.003     Document Type: Article

References (16)

1. Aboody D., and Kasznik R. CEO stock option awards and the timing of corporate voluntary disclosures. Journal of Accounting and Economics 29 (2000) 73-100
2. Brooks R., Chance D.M., and Cline B.S. Private information and the exercise of executive stock options (2005), Unpublished working paper, University of Alabama
3. Carpenter J.N., and Remmers B. Executive stock option exercises and inside information. Journal of Business 74 (2001) 513-534
4. Chauvin K.W., and Shenoy C. Stock price decreases prior to executive stock option grants. Journal of Corporate Finance 7 (2001) 53-76
5. Fama E.F., and French K.R. Common risk factors in the returns on stocks and bonds. Journal of Financial Economics 33 (1993) 3-56
6. Forbes.com, 2005. Thumbs on the scale. (E. MacDonald, and E. Brown, November 28).
7. Lakonishok J., and Lee I. Are insider trades informative?. Review of Financial Studies 14 (2001) 79-111
8. Lie E. On the timing of CEO stock option awards. Management Science 51 (2005) 802-812
9. Narayanan M.P., and Seyhun H.N. Do managers influence their pay? Evidence from stock price reversals around executive stock option grants (2005), Unpublished working paper, University of Michigan
10. Ofek E., and Yermack D. Taking stock: equity based compensation and the evolution of managerial ownership. Journal of Finance 55 (2000) 1367-1384
11. Perry T., and Zenner M. Pay for performance? Government regulations and the structure of compensation contracts. Journal of Financial Economics 62 (2001) 453-488
12. Seyhun N. Information content of aggregate insider trading. Journal of Business 61 (1988) 1-24
13. Seyhun N. Why does aggregate insider trading predict future stock returns?. Quarterly Journal of Economics 107 (1992) 1303-1331
14. Sundaram R.K., Brenner M., and Yermack D. On rescissions in executive stock options. Journal of Business 78 (2005) 1809-1835
15. Wall Street Journal, 2005. Mercury Interactive executives resign in wake of probe. (R. Buckman, M., Maremont, and K. Richardson, November 3).
16. Yermack D. Good timing: CEO stock option awards and company news announcements. Journal of Finance 52 (1997) 449-476