Lie Discovery of Backdating By Companies Noted
Bookmark & ShareJune 5, 2006
Source: Times Online
The conviction of Enron's top two bosses was supposed to draw a line under one of the blackest periods in American business history. But a new scandal is brewing that threatens once again to expose widespread greed and fraud. Almost 20 companies are being investigated by the Securities and Exchange Commission (SEC) and the Justice Department amid estimates that one in 10 top American executives may have taken part in the scam. The scandal was uncovered by ERIK LIE, a 37-year-old Norwegian and associate professor of finance at the University of Iowa. Lie was researching a theory that share-option grants prompted executives to take on more risk to boost their businesses. What he found was that in a large number of cases they were virtually eliminating risk when it came to their own options. The paper is based in the UK.
Contact: Erik Lie, ,
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