Please read the Graham etal. anddiscuss why and how management forecast can destroy firm value. Why are managers willing to give up the options that increase firm value?

http://www.cfapubs.org/doi/pdf/10.2469/faj.v62.n6.4351

Value Destruction and Financial Reporting Decisions John R Graham; Campbell R Harvey; Shiva Rajgopal Financial Analysts Journal; Nov/Dec 2006; 62, 6; ABI/INFORM Global pg. 27 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission