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Several studies show that incoming CEOs have an incentive to: A. increase earnings in the year of the executive change as well as in years

Several studies show that incoming CEOs have an incentive to:

A. increase earnings in the year of the executive change as well as in years subsequent to the change. B. decrease earnings in the year of executive change and increase earnings in the next year. C. decrease earnings for a few years after taking over to establish a low "bonus baseline." D. take actions that will make his/her predecessor look incompetent thus validating the boards decision to change CEOs.

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