Is There an Association Between Director Option Compensation and the Likelihood of Misstatement?
Director Independence;Stock Option Compensation;Financial Misstatement
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.
Recommended CitationCullinan, Charles P.; Du, Hui; and Wright, Gail B., "Is There an Association Between Director Option Compensation and the Likelihood of Misstatement?" (2008). Accounting Journal Articles. Paper 18.