News & Events

Lie Was Suspicious of Stock Option Timing

Executives at more than 40 publicly traded corporations are being investigated for a scam involving stock options. ERIK LIE, a finance professor at the University of Iowa, found that the timing of stock options issuance was too good to simply represent front-running. He hypothesized that executives were "back-dating" options. Instead of using the date of grant for options, executives used dates weeks or months before. The paper is based in California. A version of the story also ran on the Website of the ARKANSAS DEMOCRAT-GAZETTE.


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