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Professor's Stock Research Cited

Seven past and present directors of Tyson Foods Inc. might be asked to defend their actions in a Delaware court relating to stock option grants given to key executives and directors between 1999 and 2003. An academic study published by University of Iowa professor ERIK LIE in May 2005 reviewed 6,000 CEO stock option awards from 1992 through 2002. Lie found a pattern of abnormally low stock returns before grant dates and unusually high return after those grants. Lie concluded that while it is possible some executives timed stock option grants based on savvy market intuition, the odds that this would occur with such frequency are so remote the results suggested that at least some of the awards were either timed retroactively or spring-loaded. The Morning News is based in northwest Arkansas.


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