Shareholders In Backdating Companies Lost Money
Bookmark & ShareDecember 21, 2006
Source: The Oregonian
Shareholders of stock in companies caught up in the backdating scandal have lost at least $100 billion, by one measure, since backdating was first covered in The Wall Street Journal, according to an academic study released Wednesday. The study measured the performance of 110 stocks in a Journal database of companies with backdating problems. The study measured the stocks' daily returns versus the returns that would have been expected based on the stocks' historical correlation to the wider market. Stocks in the Journal's database of companies with backdating problems began losing value after a May 2005 academic study by ERIK LIE at the University of Iowa first raised the issue. Wednesday's study said the stocks, on average, declined more than 15 percent compared with their expected returns during the four weeks leading to the Journal's first article about backdating, in March 2006. The same story appeared on the Web sites of MSN NEWS, SHAREWATCH, MSNBC, BUFFALO NEWS, LOUISVILLE COURIER JOURNAL, BALTIMORE SUN, INTERNATIONAL HERALD TRIBUNE, HOUSTON CHRONICLE and BUSINESS WEEK.
Contact: Erik Lie, ,
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