The Relationship between Restatement and Stock Option Repricing

• Main Authors: Chao- Kai Shiu, 許朝凱
• Other Authors: Dr.Yi- Mian Lin
• Format: Others
• Language: zh-TW
• Published: 2007
• Online Access: http://ndltd.ncl.edu.tw/handle/83868892867459654394

碩士 === 東海大學 === 會計學系 === 95 === Through observing the companies located in U.S. that data is available, this paper examines the relationship between restatement and executives’ turnover, and the relationship among stock option repricing, restatement and executives’ compensation characteristics. The empirical result shows that restatement may affect executives’ turnover. This result implicates that the executives may leave for the bad future of the companies, or taking the responsibility of making restatement. Futhermore, it is found that restatement may enhance the tendency of adopting stock option repricing, because restatement may decrease the stock price and increase the executives’ turnover. When analyzing the executives’ compensation characteristics the result suggest that it may affect the tendency of adopting stock option repricing, because it changes the executives’ standpoint and the wealth which come from stock option. At last, this paper inspects the connection between stock option repricing and restatement under the two groups that executives’ turnover is different. It is found that the companies adopted stock option repricing may experience the event of restatement only when the executives’ turnover is higher. This finding implies that to adopt the stock option repricing or not, the companies may consider the executives’ turnover.