Rim backdating stock

Since the average is statistically significant, this means that the abnormal returns are experienced by a large proportion of companies.This result is consistent with a simple hypothesis: that companies award unscheduled options when they believe their shares to be undervalued.Data Our option grant data is obtained from the Micromedia and SEDI databases for the period from July 1, 1995 to December 31, 2006 we include option grants if the stock traded on the Toronto Stock Exchange and if we have news data for the company.The news data are obtained from two sources: 1) for the period July 1995 to December 2000 from CANSTOCK, an electronic database of all public newswire releases for the TSX; and 2) for the period January 2000 to December 2006 from (a division of CTV Globemedia Publishing inc.).The second big change was the introduction of SEDI—a web-based reporting system—on June 9, 2003.Mc Nally and Smith (2010) document how both changes improved the timeliness and accuracy of reported insider trading information.The timing of stock option grants has been a controversial issue in recent years.

While it would be interesting to analyze these changes, this is outside our sample period.

In many cases, multiple insiders receive options on the same day.

Our interest is in the stock price behaviour around the option grant date, so each option grant date is included only once, regardless of how many insiders receive options on that date.

In February of 2009, Balsillie and Lazaridis agreed to pay million to settle the OSC backdating charges.

An alternative method for managers to enrich themselves with stock options is spring-loading. They conjecture that CEOs manipulate news announcements and not option grant dates.

With spring-loading, managers issue option grants on a date that precedes or follows news releases they know will have a positive or negative impact on the stock. studies have found evidence consistent with option backdating and spring- loading. He finds no abnormal stock returns before option grant dates but significant evidence of abnormal returns in the 50 days after grant dates. To test this, they analyze options that are granted on a regular annual basis (scheduled option grants).

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Mar 6, 2007. James Balsillie, RIM's co-chief executive officer, admitted yesterday his company backdated stock options granted to employees. He said it was an error due to a misunderstanding of accounting rules. The admission makes RIM the first major Canadian company to get caught up in an options backdating. 
28-Jun-2018 08:54
Iwo techniques that corporations were using to enhance management pay packages tlie tiepricing and the backdating of sttx;k options. Stock options have been used as a means of. Backdating Stock Options. As discussed eirlier. when stock. The companies involved range f'Rim the low-tech to he high-tech, from the. 
28-Jun-2018 09:00
Nov 4, 2011. From December 1996 to July 2006, Jim Balsillie, Dennis Kavelman then CFO, Mike Lazaridis and certain other RIM officers and directors engaged in improper stock option granting practices, including backdating and repricing of executive, director and employee stock option awards. Following an internal. 
28-Jun-2018 09:04
Jun 19, 2011. This is what Mike Lazaridis and Jim Balsillie, RIM co-CEOs, are likely to face. They've been in legal jeopardy before In 2009, they paid hefty penalties for backdating stock-options. But that's nothing compared to what awaits them after RIM's 21% share price drop on Friday, June 17th. Far from new. 
28-Jun-2018 09:07
Aug 12, 2014. The false date was a day when the stock price was lower than on the date of the actual option grant. This practice, known as backdating, enriches managers at the expense of other shareholders. In 2008, the OSC charged Mike Lazaridis and Jim Balsillie of RIM inc. with option backdating. In February of. 
28-Jun-2018 09:11
SEC Charges Research in Motion and Four Senior Executives With Stock Option Backdating. FOR IMMEDIATE RELEASE 2009-27. Washington, D. C. Feb. 17, 2009 — The Securities and Exchange Commission today charged BlackBerry maker Research in Motion Limited RIM and four of its senior executives for stock. 
28-Jun-2018 09:15

Rim backdating stock introduction

Rim backdating stock

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