Download Full Text (196 KB)
During the era when the Sarbanes-Oxley Act (SOX) was passed, audit committees were given heightened responsibility and faced more stringent requirements. However, according to new research by Huntsman accounting professor ChadSimon and his co-authors (see cite below), Congress and others may have overlooked one potentially important incentive with these updated requirements. The research team found an association between barely achieving or surpassing an analyst forecast benchmark and the stock options audit committee members hold or their annual stock option receipts.
Utah State University
research, audit, committee, incentive
USU Jon M. Huntsman School of Business, "Faculty Research - Chad Simon" (2015). Jon M. Huntsman School of Business News Collection. 218.