Stock Option Schedules and Managerial Opportunism

摘要: This study investigates some of the most important avenues that mangers use to manipulate value stock option grants. It also compares these in firms issue scheduled options and irregular options. We document before Sarbanes-Oxley Act (SOX), cumulative abnormal returns were significantly negative 30-day window an grant, but turned positive after grant. pattern is more pronounced for options, evidence supports hypothesis opportunistic manipulation strike prices by CEOs maximized find disclosure requirement grants included SOX successfully curtails behavior has a lesser effect stopping Firms granting take larger discretionary accruals advance grant than degree downward earnings management increases with size subsequent further show are likely when they offer grants, have less independent board, receive analyst coverage, new CEO, exhibit poor prior performance, higher return volatility smaller size.