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THE EFFECT OF ETHICAL SIGNALS ON RECRUITMENT ...

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High Performance:<br />

OR<br />

STUDY 2 MANIPULATI<strong>ON</strong>S<br />

Performance Manipulation<br />

• Revenues have increased by at least 10% every year over the past 10 years.<br />

121<br />

• Earnings per share has been on the rise over the past several years and analysts<br />

are predicting an unprecedented high in the fourth quarter of 2008.<br />

• ABC Manufacturing has been successful in decreasing total operating costs and<br />

expenses by 15% in the last year because of efficient management techniques.<br />

• Per-share dividends are up 17% from last year. ABC Manufacturing has<br />

rewarded its share owners with 25 consecutive years of dividend growth.<br />

Additionally, dividend growth for the past five years has significantly outpaced<br />

dividend growth of companies in the Standard & Poor’s 500 stock index.<br />

Low Performance:<br />

• Revenues have decreased by at least 10% every year over the past 10 years.<br />

• Earnings per share has been on the decline over the past several years and<br />

analysts are predicting an unprecedented low in the fourth quarter of 2008.<br />

• ABC Manufacturing’s total operating costs and expenses have increased by 15%<br />

in the last year because of inefficient management techniques.

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