Creative Accounting

Essay specific features

 

Issue:

Miscellaneous

 

Written by:

Joseph P

 

Date added:

May 14, 2017

 

Level:

College

 

Grade:

A

 

No of pages / words:

1 / 219

 

Was viewed:

7073 times

 

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Essay content:

One commonly accepted incentive for the systemic over-reporting of corporate income was the granting of stock options as part of executive compensation packages. Since stock prices reflect earning reports, stock options could be most profitably exercised when income is exaggerated, and the stock can be sold at an inflated profit...
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Ultimately, the goal for most companies is to smooth out bumps to show steady or consistent high growth. A company that shows steady growth with few surprises often gets regarded from investors via a high stock price which goes a long way towards keeping the executives’ stock options in the money...
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