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Lie Stock Option Research Led To Investigations

Currently more than 100 companies are under investigation by the Security and Exchange Commission for allegedly backdating stock options, and it has been reported that the FBI has more than 50 active cases it is investigating. We can thank the world of academia for helping bring this fraudulent practice to light. Research professors playing the role of the white knights on their trusty steeds have ridden to rescue the damsel in distress, in this case U.S. investors. David Yermack, an associate professor at New York University's Stern School of Business, is credited with the earliest research on the subject. Randall Heron with the Kelley School of Business at Indiana University and ERIK LIE with the Henry B. Tippie College of Business at the University of Iowa have also done their share in taking the cover off this fraudulent practice. The newspaper is based in Florida.

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