Erik Lie (2005). On the Timing of CEO Stock Option Awards

Finance research paper presentation slides. This presentation summarizes the study by Erik Lie (2005) on the timing of CEO stock option awards. Slides cover main research questions (patterns in stock prices related to CEO grants, skill evolution in timing grants, and detection of backdated grants), motivation (building on Yermack 1997, Aboody & Kasznik 2000, Chauvin & Shenoy 2001), data sources (5,977 CEO option grants from ExecuComp 1992–2002, CRSP stock prices, Fama-French three-factor model), methodology (analysis of abnormal returns, scheduled vs. unscheduled grants, backdating detection), results (stock price declines before and rises after grants, backdating evidence, flexibility in scheduled grants), and main conclusions (managers actively manipulate timing, governance implications). Designed for students who need ready-to-use, detailed analysis with graphs, tables, and discussion points.