1. Read the Case Study: Fraud Versus Ethics: The Case Of The Backdating Of Stock Options https://clutejournals.com/index.php/JBER/article/download/2406/2453 2. The article involves several theories on ethics and mentions the issue of stock options manipulations. Specifically it examines violations committed and whether the actions by executives were fraudulent or unethical. Please discuss how the author goes about researching and supporting the main topic of the case study. Think about the following: What type of data was used for the research? How did the author synthesize or organize the information? Describe the references that were incorporated and if they supported the argument. Overall, do you think the author presented a strong research topic with supporting evidence?

Reply to 2 additional students.* student #1: The investigation has been carried out in order to find out reasons what the impacts of backdating of employee stock options are. 140 companies have become a data size for this study. Such data size is considerable high and effective to collect sufficient evidence and have an opinion on the topic. Financial reports, company policies documents and other disclosures reports become a useful source of data on the basis of which the report is formed. The study revealed that lots of stakeholders have been facing great losses due to such backdating option. It not merely illegal but implication of ethical practices also apply. The information received or gathered is synthesized through logical presentation of such information. The report first highlighted numerous theories on ethics and its implications on Stock Exchange Commission (SEC); fraud with respect to business also becomes part of this report since due to opportunities of manipulation in business reporting fraud has become an integral part of every business (Frunza, 2015). Moreover stock option, civil and criminal issues, legal and ethical cases are the discussion topics of this research article. To provide sufficient information and analysis are provided with the help of this article and discussion methodology is used to draft the report. With the help of total nineteen references, this report is developed. These references are essential to writing the report since it provides meaningful insight on the topic of discussion. Valid and authentic information is gathered with the help of such references. Without meaningful and informative data there could not be possible to write any report. It validates the information and provides a basis of literature review for the report. The topic of this report is very critical, and discussion needs to be backed by relevant evidence, and without reference, this could not be possible. In my opinion, this research topic is strong and good enough. The debate on the topic has become serious and essential because financial sectors have become a fraud hub for businesses. Accountants find significant room in doing frauds and manipulations in accounts. Senior executives find themselves in a position to control reporting and disclosure policies. They manipulate record keeping and analysis in their self – interest, and benefits. Stakeholder benefits and interest are their least priority and concern. This approach of doing business should be highlighted with such research reports and working papers. It will help concern authorities to take appropriate action and safeguard the rights of stakeholders. Such research reports become a major source of analysis and awareness for investors who would like to invest their money in reputable businesses. Financial statement of any company is usually showing a clear and welcoming picture of their financial position. They never disclose weak and fraudulent areas. However, the reality is quite different from what is reported in books of accounts. With such reports and topics stakeholders get to know the better picture of the business community and their self – centered nature of doing businesses (Steven L. Skalak, 2015). It gives information to concern authorities and helps them in making policies and laws. Such reports are beneficial for the awareness of all stakeholder. Investing money in stocks is always a matter of a grey area. People find them insufficient and lack of pertinent information that result in them to bear losses. The money market is certainly risky and changing. The need for information is high in such market. However, information must be SMART enough that could be relied on, and a decision must be based on such information. The research methodology of this paper is subtle and effective for readers and researcher and stakeholders who want to invest in the money market. Further research on the topic could be undertaken. Student #2: Fraud Versus Ethics Q1- What type of data was used for the research? ‘Fraud Versus Ethics: the case of the backdating the stock options’ the case study’s data used by the author is a qualitative type and secondary data was used from the journal name “Journal of business and economics research”the year 2008. Q2- How did the author synthesize or organize the information? The word Backdating was totally new to me, but the author has described the term very clearly even though I have little knowledge about the stock market. The author is completely able to differentiate between the fraud and unethical behavior are two different terms. Sometimes bad decisions made by the top management to achieve their business goal towards stockholders (someway owners of the company) is the reason for losing their trust in management. This case studies represents some theories on ethics and review the issue of stock manipulations and violations committed to determining whether the actions by the management or executive were fraudulent or unethical. The author also refers to civil cases and criminal cases both of these are against the organization's fraud and ethics regulations. Q3- Describe the references that were incorporated and if they supported the argument. In total the author used 19 references which strongly supports the main story of the case study. The references used in this case study includes journals and business reports which clearly states the impact of fraud and ethics on business environments. According to the case study, 140 companies were investigated and they are subject to release some public information to the investigators. Finally, the author integrates all information and related references to find illegal activities committed in the business. Q4- Overall, do you think the author presented a strong research topic with supporting evidence? Yes, I believe the author was completely able to define this case study as I learn many new things from this. The author was also able to provide strong evidence of how fraud and ethics going on in the firms and business giving its stockholder negative idea about management. This case study also gives an idea about unethical behavior practice by the executives were investigated by SEC and some regulations need to follow especially those companies.