Which of the following statements is FALSE?
A) New SEC rules require firms to report option grants within two days of the grant date, which may help prevent further abuses.
B) Studies have found evidence that the practice of timing the release of information to maximize the value of CEO stock options is widespread.
C) Managers have an incentive to manipulate the release of financial forecasts so that good news comes out before options are granted and bad news is delayed until after the options are granted.
D) The factor contributing most to the climb in CEO total compensation for the 1990s was the sharp increase in the value of stock and options granted each year.
C
Explanation: C) Managers have an incentive to manipulate the release of financial forecasts so that bad news comes out before options are granted and good news comes out after options are granted.
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Which of the following controls package communications and labeling in the United States?
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