Ceo Duality Causes Conflict Of Interest As Management

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served as board chairs, as CEO duality causes conflict of interest as management may override controls (p.4221). Likewise, the research by Giroux (2008) on Enron accounting scandal revealed motivations involves key executive’s greed, weaknesses and lack of ethics on the accounting standard, energy deregulation, auditors independence, law firms and investment bankers lack of independence, neglected board of directors, lack of regulatory control and oversight, as well as political and influential connections and practices (p.1226). The research by Weld et al. (2004) claimed that the analyst and the market pressure to meet revenue expectation, leads managers to engage in fraudulent recognition of revenue practices and cited SEC Chairman, Arthur Levitt concerns that the drive of meeting analyst expectation pressure corporate managers, analysts and auditors override ethical business practice (p.45). Nonetheless, the research by Vogel (2001) blamed Cendant’s compensation policy of stock-options tied to the company’s performance potentially caused fraud (p.409). Consistent with the research by Ball (2009) mentioned that some commentators blaming the stocked option employee compensation package and performance-based incentive compensation to offer additional motivation for accounting fraud (p.285). The research by Ball (2009) also indicated the cause of the accounting scandal stems from accounting practices to manage earnings, where managers intervene in the reporting of its
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