Earnings Management around Employee Stock Option Reissues

摘要: We investigate market behavior in a setting where managerial incentives to manipulate earnings and price should be apparent ex ante participants. find evidence of abnormally low discretionary accruals the period following announcements cancellations executive stock options up time are reissued. Nevertheless, analysts investors not misled. Discretionary have little power explaining performance during this period. Moreover, do explain subsequent analyst forecast errors. Thus, our findings suggest that, transparent setting, respond management.