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Stock options: From backdating to spring loading

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  • Bianchi, Giuliano

Abstract

In this article I explore the impact of the introduction of the Sarbanes–Oxley Act (SOX) in 2002 and the Securities and Exchange Commission's implementation of the Act in 2006 on the options granting process. I show that after the introduction of the SOX and its implementation the practice of backdating options was substituted with the practice of “spring loading” options around analysts’ price targets announcements.

Suggested Citation

  • Bianchi, Giuliano, 2016. "Stock options: From backdating to spring loading," The Quarterly Review of Economics and Finance, Elsevier, vol. 59(C), pages 215-221.
    • Handle: RePEc:eee:quaeco:v:59:y:2016:i:c:p:215-221
    DOI: 10.1016/j.qref.2015.07.004
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    References listed on IDEAS

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