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New Study Claims Corporate Executives Intentionally Mislead Investors for Personal Gain

Manufacturing discounts on their own stock.
Photographer: Jerome Favre/Bloomberg

It won't surprise any market-watcher to learn that in the run-up to earnings season, companies tend to lower the bar for top and bottom line performance, thereby giving themselves better odds of exceeding analysts' expectations.

However, a new working paper suggests that the sins of omission that occur during the corporate "cheating" season, as it was dubbed by Societe Generale Global Head of Quantitative Strategy Andrew Lapthorne, are far more insidious.