Quiz Ch 12 – T/F Managerial Admissions of Earnings Management in Surveys
Principles of Corporate Finance
Brealey, Myers, and Allen
13th Edition
True or false: Survey data indicates that managers acknowledge engaging in earnings management.
True or false: Survey data indicates that managers acknowledge engaging in earnings management.
True or false: Stock-based managerial compensation aligns managers’ interests with macroeconomic risks.
True or false: Shareholders often turn to independent auditors to assess their managers’ performance.
True or false: Small shareholders typically initiate proxy contests when a company is underperforming.
True or false: Typically, top management employs spreadsheet programs to assess all capital budgeting projects before reaching decisions.
True or false: Stock option grants are deemed more suitable as compensation for lower-level managers compared to their appropriateness for higher-level managers.
True or false: Tax advantages in the United States encourage the use of stock option grants, rather than salary increments, as a means to reward good performance by CEOs in large firms.
True or false: When it comes to long-term incentives and variable bonuses, CEOs of U.S. companies stand at the forefront, receiving the highest level of compensation.
What temptations might managers on a fixed salary face?
Who holds the trademark for the term Economic Value Added (EVA)?