Title

The impacts of SOX and SEC investigation on the corporate governance of option backdating firms

Document Type

Article

Publication Title

Advances in Accounting

Abstract

This study investigates the combined impact of the Sarbanes-Oxley Act of 2002 (SOX) and the subsequent related Securities and Exchange Commission's (SEC) initiatives on the corporate governance characteristics of firms that had historically backdated stock options. Our results show that backdating firms had both weaker board-level and committee-level corporate governance characteristics than control firms in the pre-SOX period. In contrast, backdating firms dress up their board-level governance to meet regulatory requirements but still feature weaker committee-level corporate governance in the post-SOX era. © 2011.

First Page

205

Last Page

212

DOI

10.1016/j.adiac.2011.05.004

Publication Date

12-1-2011

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