Comment on the ethical implications of management’s behavior

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In a survey conducted by two accounting professors, the Wall Street Journal reported that a number of high-level corporate managers indicated that they would choose investments that would boost current net income to meet the expectations of analysts following their companies in favor of better investments that produced much larger returns in the future. "To the professors' surprise, the financial officers were eager to talk about how companies would forgo projects that would give them economic gain in order to put a finer gloss on earnings." Comment on the ethical implications of management's behavior.

Reference no: EM131418680

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