Because prior studies find mixed results on the relation between CEOs’ pay performance incentives and a firm’s likelihood of financial reporting fraud, we restudy their relationship using innovative research methods. First, we concentrate on incentives from granting options rather than...

Managers form simplified mental models to cope with market environment uncertainties and to process information. A critical decision is whether to enter a high-potential market early. Large innovation and development investments involved in this decision increase uncertainty. We examine the...