Backdating Costs Investors 8% Per Share: Survey

Law360, New York (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 UK

UK Financial Services

Read Our Latest UK Legal News & Analysis

Financial Services Law360 UK and Insurance Law360 UK provide breaking news and in-depth analysis on U.K. and European Union regulation, enforcement, legislation, and litigation involving banks, investment firms, insurers, and more.