The manipulation of executive stock option exercise strategies: Information timing and backdating

Journal of Finance

Volumn 64, Issue 6, 2009, Pages 2627-2663

  Cicero, David C ^a  

^a UNIVERSITY OF DELAWARE   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 72249097130     PISSN: 00221082     EISSN: 15406261     Source Type: Journal    
DOI: 10.1111/j.1540-6261.2009.01513.x     Document Type: Article

References (23)

1. Aboody, David, John S. Hughes, Jing Liu, and Wei Su, 2008, Are executive stock option exercises driven by private information Review of Accounting Studies 14, 551 571.
2. Aboody, David, and Ron Kasznik, 2000, CEO stock option awards and the timing of corporate voluntary disclosures, Journal of Accounting and Economics 29, 73 100.
3. Armstrong, Chris, Alan D. Jagolinzer, and David F. Larcker, 2007, Timing of employee stock option exercises and the valuation of stock option expenses, Working paper, Stanford University.
4. Bartov, Eli, and Partha Mohanram, 2004, Private information, earnings manipulations, and executive stock-option exercises, Accounting Review 79, 889 920.
5. Bebchuk, Lucian A., Yaniv Grinstein, and Urs Peyer, 2009, Lucky CEOs and lucky directors, Journal of Finance (forthcoming).
6. Bettis, J. Carr, Jeffrey L. Coles, and Michael L. Lemmon, 2000, Corporate policies restricting trading by insiders, Journal of Financial Economics 57, 191 220.
7. Bizjak, John, Michael L. Lemmon, and Ryan J. Whitby, 2009, Option backdating and board interlocks, Review of Financial Studies (forthcoming).
8. Boehmer, Ekkehart, Jim Musumeci, and Annette B. Poulsen, 1991, Event-study methodology under conditions of event-induced variance, Journal of Financial Economics 30, 253 272.
9. Cai, Jie, 2007, Executive stock option exercises: Good timing or backdating Working paper, SSRN.
10. Carpenter, Jennifer N., and Barbara Remmers, 2001, Executive stock option exercises and inside information, Journal of Business 74, 513 534. (Pubitemid 33357092)
11. Dhaliwal, Dan S., Merle Erickson, and Shane Heitzman, 2009, Taxes and the backdating of stock option exercise dates, Journal of Accounting and Economics 47, 27 49.
12. Heath, Chip, Steven J. Huddart, and Mark H. Lang, 1999, Psychological factors and stock option exercise, Quarterly Journal of Economics 114, 601 627.
13. Heron, Randall A., and Erik Lie, 2007, Does backdating explain the stock price pattern around executive stock option grants Journal of Financial Economics 83, 271 295.
14. Huddart, Steven, and Mark H. Lang, 2003, Information distribution within firms: Evidence from stock option exercises, Journal of Accounting and Economics 34, 3 31.
15. Lie, Erik, 2005, On the timing of CEO stock option awards, Management Science 51, 802 812.
16. McDonald, Robert L., 2003, Is it optimal to accelerate the payment of income tax on share-based compensation Working paper, Northwestern University.
17. McDonald, Robert L., 2005, Derivatives Markets (Addison-Wesley, Boston, MA).
18. Narayanan, M. P., and H. Nejat Seyhun, 2005, Do managers influence their pay? Evidence from stock price reversals around executive stock option grants, Working paper, University of Michigan.
19. Narayanan, M. P., and H. Nejat Seyhun, 2006, Effect of Sarbanes-Oxley Act on the influencing of executive compensation, Working paper, University of Michigan.
20. Narayanan, M. P. and H. Nejat Seyhun, 2008, The dating game: Do managers designate option grant dates to increase their compensation Review of Financial Studies 21, 1907 1954.
21. Public Company Accounting Oversight Board (PCAOB), 2004, Auditing Standard No. 2: An audit of internal controls over financial reporting performed in conjunction with an audit of financial statements.
22. Scholes, Myron S., Mark A. Wolfson, Merle Erickson, Edward L. Maydew, and Terrence J. Shevlin, 2005, Taxes and Business Strategy: A Planning Approach (Prentice Hall, Upper Saddle River, NJ).
23. Yermack, David, 1997, Good timing: CEO stock option awards and company news announcements, Journal of Finance 52, 449 476.