Companies whose chief financial officers are paid large bonuses report higher discretionary accruals, excess sales and face more lawsuits, a study from researchers at Harvard Business School finds. "The magnitudes of these effects are much larger for CFOs in comparison to both CEOs and division managers," Felix Oberholzer-Gee and Julie Wulf write in the study, which has not yet been published. The study suggests that companies should pay close attention to incentive policies for CFOs and other managers.

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