American firms increasingly adopt stock compensation plans to compensate mid- to high-level managers. Companies are motivated to

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American firms increasingly adopt stock compensation plans to compensate mid- to high-level managers. Companies are motivated to use stock options as a large portion of the compensation mix because boards of directors view stock options as aligning manager and stockholder interests better than most other forms of compensation. Research the linkage between reported accounting abuses (e.g., manipulating reported earnings) and the increased use of stock options for managerial compensation. Discuss your findings.

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Cost Accounting Foundations And Evolutions

ISBN: 9781618533531

10th Edition

Authors: Amie Dragoo, Michael Kinney, Cecily Raiborn

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