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Options backdating: a Canadian perspective

Author

Listed:
  • Compton, Ryan
  • Sandler, Daniel
  • Tedds, Lindsay M.

Abstract

This paper provides an overview of (1) the basics of employee stock option backdating; (2) why firms and individuals may engage in backdating; (3) the difficulties in examining option backdating in Canada as well as a Canadian case study of option backdating; (4) implications of backdating; and (5) suggestions for curbing the potential to backdate in Canada.

Suggested Citation

  • Compton, Ryan & Sandler, Daniel & Tedds, Lindsay M., 2010. "Options backdating: a Canadian perspective," MPRA Paper 39787, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:39787
    as

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    File URL: https://mpra.ub.uni-muenchen.de/39787/1/MPRA_paper_39787.pdf
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    References listed on IDEAS

    as
    1. Chauvin, Keith W. & Shenoy, Catherine, 2001. "Stock price decreases prior to executive stock option grants," Journal of Corporate Finance, Elsevier, vol. 7(1), pages 53-76, March.
    2. Heron, Randall A. & Lie, Erik, 2007. "Does backdating explain the stock price pattern around executive stock option grants?," Journal of Financial Economics, Elsevier, vol. 83(2), pages 271-295, February.
    3. Yermack, David, 1997. "Good Timing: CEO Stock Option Awards and Company News Announcements," Journal of Finance, American Finance Association, vol. 52(2), pages 449-476, June.
    4. Kenneth J. Klassen & Amin Mawani, 2000. "The Impact of Financial and Tax Reporting Incentives on Option Grants to Canadian CEOs," Contemporary Accounting Research, John Wiley & Sons, vol. 17(2), pages 227-262, June.
    5. M. P. Narayanan & H. Nejat Seyhun, 2008. "The Dating Game: Do Managers Designate Option Grant Dates to Increase their Compensation?," The Review of Financial Studies, Society for Financial Studies, vol. 21(5), pages 1907-1945, September.
    Full references (including those not matched with items on IDEAS)

    Citations

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    as


    Cited by:

    1. Compton, Ryan & Sandler, Daniel & NIcholls, Christopher & Tedds, Lindsay M., 2011. "Insider reporting obligations and options backdating," MPRA Paper 39791, University Library of Munich, Germany.
    2. Compton, Ryan & Nicholls, Christopher C. & Sandler, Daniel & Tedds, Lindsay, 2011. "Quantifying the Personal Income Tax Benefits of Backdating: A Canada - US Comparison," MPRA Paper 39789, University Library of Munich, Germany.
    3. Compton, Ryan & Sandler, Daniel & Tedds, Lindsay M., 2010. "Backdating, tax evasion, and the unintended consequences of Canadian tax reform," MPRA Paper 39788, University Library of Munich, Germany.

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    More about this item

    Keywords

    Backdating; Executive stock options; Compensation;
    All these keywords.

    JEL classification:

    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • N22 - Economic History - - Financial Markets and Institutions - - - U.S.; Canada: 1913-
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects

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