Managers are increasingly under intense pressure to manage perceptions of people regarding the company, especially if they feel that the financial statements might result in a decline in stock price
Companies would rather meet or beat analysts’ expectations than invest in long term projects of value that might impact current financial statements negatively. Professor Shivaram Rajagopal of Emory University writes a report based on his findings.
[This article has been reproduced with permission from the Indian School of Business, India]