Lie Research Led To 'Next Enron'
Bookmark & ShareAugust 31, 2006
Source: Austin American-Statesman
More than 80 companies have come under scrutiny in federal investigations of possible stock option fraud, and you can't help but wonder if we're on the verge of Enron/WorldCom/Tyco revisited. So far, news of the investigations hasn't roiled the markets the way a spate of corporate scandals did a few years ago. But this does have the potential to shake the confidence of investors. More than 2,000 U.S. firms have engaged in the practice, according to an analysis by two professors, the University of Iowa's ERIK LIE and Indiana University's Randall Heron. They examined nearly 40,000 stock option grants to executives at more than 7,700 companies between 1996 and 2005.
Contact: Erik Lie, ,
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