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The SEC recently passed a rule requiring the company's it regulates to have policies that force executives to return incentive-based compensation earned through misstated accounting

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The SEC recently passed a rule requiring the company's it regulates to have policies that force executives to return incentive-based compensation earned through misstated accounting information (even if the misstatement was not intentional). A plausible CEO response to this rule is: O CEOs will be less likely to disclose known errors in accounting information after- the-fact 0 All of these answers are plausible responses 0 CEOs will desire to shift compensation away from performance metrics subject to this rule 0 CEOs will be less likely to manipulate accounting information that feeds into performance metrics

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