Daily Archives: July 8, 2011, 10:07 pm

Scandal Enforcement at the SEC: Salience and the Arc of the Option Backdating Investigations

We study the impact of scandal-driven media scrutiny on the SEC’s allocation of enforcement resources. We focus on the SEC’s investigations of option backdating in the wake of numerous media articles on the practice of backdating. We find that as the level of media scrutiny of option backdating increased, the SEC shifted its mix of investigations significantly toward backdating investigations…

Read More