The Effect of Options Backdating Disclosures on the Implied Cost of Equity Capital

Persistent Link:
http://hdl.handle.net/10150/194764
Title:
The Effect of Options Backdating Disclosures on the Implied Cost of Equity Capital
Author:
Singh, Rohit
Issue Date:
2008
Publisher:
The University of Arizona.
Rights:
Copyright © is held by the author. Digital access to this material is made possible by the University Libraries, University of Arizona. Further transmission, reproduction or presentation (such as public display or performance) of protected items is prohibited except with permission of the author.
Abstract:
In this dissertation, I examine the influence of firm-specific disclosures regarding potential backdating of past stock option grants on investor risk perceptions measured by the implied cost of equity capital. Using four different measures, univariate tests provide only weak evidence that investors charge a higher cost of capital when firms announce investigations of past stock option grants to uncover potential backdating and charge a lower cost of capital after conclusion of reviews and filing of delayed and restated financial statements. The regression results are inconsistent across different specifications and suggest that despite intense media scrutiny, the effect of stock options backdating disclosures on the perceived risk of implicated firms was minor
Type:
text; Electronic Dissertation
Degree Name:
PhD
Degree Level:
doctoral
Degree Program:
Accounting; Graduate College
Degree Grantor:
University of Arizona
Committee Chair:
Dhaliwal, Dan

Full metadata record

DC FieldValue Language
dc.language.isoENen_US
dc.titleThe Effect of Options Backdating Disclosures on the Implied Cost of Equity Capitalen_US
dc.creatorSingh, Rohiten_US
dc.contributor.authorSingh, Rohiten_US
dc.date.issued2008en_US
dc.publisherThe University of Arizona.en_US
dc.rightsCopyright © is held by the author. Digital access to this material is made possible by the University Libraries, University of Arizona. Further transmission, reproduction or presentation (such as public display or performance) of protected items is prohibited except with permission of the author.en_US
dc.description.abstractIn this dissertation, I examine the influence of firm-specific disclosures regarding potential backdating of past stock option grants on investor risk perceptions measured by the implied cost of equity capital. Using four different measures, univariate tests provide only weak evidence that investors charge a higher cost of capital when firms announce investigations of past stock option grants to uncover potential backdating and charge a lower cost of capital after conclusion of reviews and filing of delayed and restated financial statements. The regression results are inconsistent across different specifications and suggest that despite intense media scrutiny, the effect of stock options backdating disclosures on the perceived risk of implicated firms was minoren_US
dc.typetexten_US
dc.typeElectronic Dissertationen_US
thesis.degree.namePhDen_US
thesis.degree.leveldoctoralen_US
thesis.degree.disciplineAccountingen_US
thesis.degree.disciplineGraduate Collegeen_US
thesis.degree.grantorUniversity of Arizonaen_US
dc.contributor.chairDhaliwal, Danen_US
dc.contributor.committeememberDhaliwal, Danen_US
dc.contributor.committeememberTrombley, Marken_US
dc.contributor.committeememberBens, Danielen_US
dc.contributor.committeememberGoodman, Theodoreen_US
dc.identifier.proquest2806en_US
dc.identifier.oclc659749862en_US
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