Backdating Costs Investors 8% Per Share: Survey

Law360 (September 6, 2006, 12:00 AM EDT) -- Backdating of options issued to executives cost shareholders a stunning 8% per share, or almost $500 million on average for the companies involved, a recent university research paper concludes.

The paper, written by M.P. Narayanan, Cindy A Schipani and H. Nejat Seyhun of the M. Ross School of Business at the University of Michigan, examined a sample of firms that have already been implicated in the backdating scandal. (Editor's Note: The full report is attached below, courtesy of the authors.)

Stock options grants are not necessarily...
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.