Advances in Accounting, Finance and Economics
Several reports during 2005 -2007 questioned how over one-hundred pub-licly-traded companies had apparently backdated stock-option grants beginning in the 1990s. An analysis of the external audit firms affiliated with these companies revealed that these firms are dis-proportionally represented as compared to relative audit-market shares of all public companies. After controlling for industry-adjusted audit-market shares, statistically fewer backdating companies than expected used Arthur Andersen as their auditors. Overall, the results argue against the notion of audit firm involvement as a conduit for these transactions.
Typpo, E. W.
Audit Firm Affiliations with Companies Backdating Executive Stock Options.
Advances in Accounting, Finance and Economics, 1(1), 1–11.