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In 2005, the SEC enacted the Securities Offering Reform (Reform), which relaxes restrictions on the release of forward-looking information before equity offerings. The SEC argues that a richer information environment in recent years has rendered these disclosure restrictions unnecessary, as it prevents timely and broad information flow when recent(More)
Consistent with allegations that high stock-based compensation levels in the 1990s led managers to boost the stock price by manipulating earnings before selling stock, we find that: managers tended to inflate earnings before selling stock; during 1997–2000, firms we identify as managing earnings the most experienced returns 21% higher than firms managing(More)
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