If a manager is paid a percentage of profits, does this generate a motive to manipulate profits?

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If a manager is paid a percentage of profits, does this generate a motive to manipulate profits? Would this be anticipated by principals and, if so, how would principals react to this expectation?

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Financial Accounting Theory

ISBN: 9780071013147

4th Edition

Authors: Craig Deegan, H. Bierman

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Question Posted: Jun 05, 2024 01:03 AM

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If a manager is paid a percentage of profits, does this generate a motive to manipulate profits?

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Financial Accounting Theory

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