And little lies can become big problems. Grade boasted of his exploits as a Navy pilot in Vietnam. After Harnischfeger filed for bankruptcy in June, some colleagues speculated that Grade's problems discouraged banks from giving the company credit that would have allowed it to avert filing for Chapter 11 protection. Upping the ante . In today's stock market, companies feel more pressure than ever to deliver bigger profits, faster-growing sales, and, of course, higher stock prices.
Analysts gauge a company's earnings prospects, relying heavily on company guidance.
Companies, in turn, take liberties where they can to meet analysts' forecasts. As more Americans save for retirement in the stock market, a culture of gamesmanship over the numbers is weaving itself into the fabric of accepted conduct, Levitt says. World Report Inc. All rights reserved. Read our information page .