Backdating More Widespread Than Previously Thought

Law360, New York (July 18, 2006, 12:00 AM EDT) -- Nearly 30% of publicly traded companies—or upwards of 2,000 companies—may have illegally backdated stock options over a 10-year span, according to a new study by a pair of finance professors.

That is a far cry from the 60 or so companies that have so far admitted they are under investigation by the U.S. Securities and Exchange Commission or other government agencies.

“The alleged incidents of backdating that have surfaced in the media appear to represent merely the tip of the iceberg,” the study said.

“Our results...
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