Based on this study, how do the authors establish (or try to convince the reader) that backdating is the most likely explanation for the abnormal return patterns documented in prior studies?Explain
Read “Does backdating explain the stock price pattern around executive stock option grants?” 6. Lie (2005) points out that stock returns attributable to market factors is negative before option grants and positive afterward. Why does this rule out (or question) the conclusion of prior studies that managers opportunistically time the release of information around grant […]