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Hyde publishes ‘Deceit pays dividends’ in The Conversation

Steven Hyde, an assistant professor of management in the College of Business and Economics, published “Deceit pays dividends: How CEO lies can boost stock ratings and fool even respected financial analysts” in The Conversation on Sept. 27, 2023.

An excerpt from this article reads: “The multibillion-dollar collapse of FTX – the high-profile cryptocurrency exchange whose founder now awaits trial on fraud charges – serves as a stark reminder of the perils of deception in the financial world.

The lies from FTX founder Sam Bankman-Fried date back to the company’s very beginning, prosecutors say. He lied to customers and investors alike, it is claimed, as part of what U.S. Attorney Damian Williams has called ‘one of the biggest financial frauds in American history.’

How were so many people apparently fooled?

A new study in the Strategic Management Journal sheds some light on the issue. In it, my colleagues and I found that even professional financial analysts fall for CEO lies – and that the best-respected analysts might be the most gullible.”