CEO incentives and earnings management
Published 1 January 2004
Daniel Bergstresser
Citations2,303
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Abstract
We provide evidence that the use of discretionary accruals to manipulate reported earnings is more pronounced at firms where the CEO's potential total compensation is more closely tied to the value of stock and option holdings. In addition, during years of high accruals, CEOs exercise unusually large numbers of options and CEOs and other insiders sell large quantities of shares.
Keywords
Business, Management and Accounting
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