Thursday, August 27, 2009

Hidden Aggravator Of Corporate Fraud: CEO Ego Stroking From Media

The article discussing it, "Ego And The CEO", comes from the Globe and Mail:

Which is the biggest red flag for a potential accounting fraud: Bad corporate governance, an overinflated share price or too many stock options?

None of the above, according to a new study by researchers from three Canadian universities.

They argue that the biggest risk factor for fraud is a CEO with a truly oversized ego....
It makes sense. People who are puffed up either get the idea that they can pull magic rabbits out of hats, making any rule-breaking apparently "harmless," and/or feel pressured to live up to the hype even if it requires chicanery to do so.

Back in the olden days, many a CEO shunned publicity. That may have been the result of seeing the same lesson taught in the 1920s.

Thankfully, many value companies are below the publicity radar. Many CEOs of value companies are "below temptation." It makes for a relatively nice world, if not necessarily Arcadiaesque.


Note: I got this article because it was quoted in today's edition of the Casey Research Daily Dispatch

4 comments:

  1. I put some more stuff about SEO in a comment on Stock Pursuit and the only links you will ever need to learn it entirely. I use google's webmaster tools to track backlinks for stock pursuit. I'd imagine if low pe stocks or stocks with low pe get any searches you should be getting some traffic for those. statcounter keywords should show your top keywords every day. I think my link to you with "PE" in the anchor text should have given you some google juice for PE. If other keywords get you in top 20/page two on Goo with about 8 or 10 clicks a day page one can be way more. For some reason people type Walmart vs Target in google. i got some nice backlinks for that and had some steady traffic for it when i was on page 1.

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  2. my walmart vs target post is way out of position though now but i doubt people are looking to click on ads when they search for it. i think it helped me a little though but targeting people looking to pay for a stock broker has been THE best for me so far. with affiliate ad bc every conversion equals $30 vs $1.50 for a adsense click. it takes tons of targeted traffic to be effective with adsense.

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  3. you might be able to get top 10 for low pe ratio. Newbies use "list" so maybe "low pe stocks list"

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  4. Thanks for the advice. I'm actually on the second page for a Google search of "low p e stocks", but it hasn't gotten me much yet. I could shoot for "low pe stocks list".

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