Types of financial performance measures

Description

Donegan, J., Ganon, M., & Johnson, Z. (2017). Influencers of Earnings Management Fraud: Coercion, Project Stage, and Ethics. Journal Of Managerial Issues, 29(2), 169-188.

1-Do you think that all types of financial performance measures are inherently bad or do you think if they are structured correctly they can be useful? If so, how?

2-Do you think it is realistic to have ever-increasing goals? Do they help to motive people to improve performance or do you think the ever-increasing pressure will lead to more fraud? Would your answer change in times of recession?

3-How can an investor know which companies have made legitimate strides to provide their employees with a positive, supportive work environment versus those that are merely providing lip-service to ethics and ethical behavior? How could providing some sort of support system improve ethical practices?

4-Allowing employees to think outside the box and implement untested ideas fosters an organizational culture of innovation. It is through failure that companies learn what doesn’t work. How could a company express a willingness to accept a reasonable amount of failure? Do you think that helps foster a more ethical work environment?

Sample Solution