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Lie's Options Backdating Research Cited

Extensive statistical research conducted by two Ontario-based law firms concludes that many Canadian-listed companies have engaged in stock-option backdating or flouted Toronto Stock Exchange rules governing the granting of options to senior executives. Statistical research of the kind undertaken by the firms has been the catalyst for option manipulation enforcement procedures and civil lawsuits in the United States. A study conducted by ERIK LIE at the University of Iowa and Randall Heron at Indiana University, published in July 2006, was a primary source for the attorneys in their initial pursuit of the matter. The study found that 29.2 percent of U.S. firms manipulated grants to top executives at some point between 1996 and 2005. The newspaper is published in Canada.

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