We use cookies on this site to enable your digital experience. By continuing to use this site, you are agreeing to our cookie policy. close

Executives Still Play Options Backdating Game: Study

Law360 (January 27, 2006, 12:00 AM EST) -- The Sarbanes-Oxley Act has done little to deter corporate executives from manipulating stock options, according to a new study by two University of Michigan professors.

Egregious discrepancies in reporting option grants have gone largely unnoticed since the act was passed in Congress in 2002, the report found.

Its authors, M. P. Narayanan and H. Nejat Seyhun, who are business professors of finance, argue that strategic market timing and late reporting are the chief methods of stock-option abuse.

It’s a clever game, they posit, with two major...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.