Is There an Association Between Director Option Compensation and the Likelihood of Misstatement?

Document Type



Published by Elsevier in Advances in Accounting, volume 24, issue 1, pages 16-23. Bryant users may access this article here.

Publication Source

Advances in Accounting


Using a sample of 105 U.S. firms that misstated their revenue matched with a sample of non-misstatement firms, this article finds that companies whose independent directors do not receive stock options are less likely to misstate revenues than companies who meet the Sarbanes–Oxley definition of independence.