The terminal value generally reflects a substantial portion of a firm's market value. Stable growth models are usually used to estimate terminal values. We use a simple model of a firm to derive a valuation function for the terminal value in the presence of inflation. Our model reveals that...

Since academic scholars and the Wall Street Journal reported widespread evidence indicating that option grants to executives were backdated, an avalanche of news stories followed documenting this ever-widening corporate scandal. In this study we ask: quot;How do disclosures of backdating affect...

The revelation that scores of firms engaged in the illegal manipulation of stock options' grant dates (i.e. quot;backdatingquot;) captured much public attention. The evidence indicates that the consequences stemming from management misconduct and misrepresentation are of first-order importance...