CEOs are less likely to manipulate firm earnings reports to make themselves look good in the short run when they don't have an ownership share.

Question

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Research suggests that CEOs who don't have an ownership share may be more likely to engage in unethical behavior, including manipulating earnings reports, in order to boost short-term performance and improve their chances of being rewarded through other means such as bonuses or stock options. CEOs with an ownership stake have a longer-term perspective and are more likely to focus on sustainable growth rather than short-term gains.

CEOs Are Less Likely to Manipulate Firm Earnings Reports to Make