GDP and stock options
By stlplace on Jul 7, 2008 in China, earning, Economy
GRE analogy problem
China GDP number: politicians vs.
Corporate earning: executives stock options
Hint: the local officials pump up the GDP numbers so that they can get promoted; the corporate CEO/CFO pump up the earning number so that their stock options will be more valuable.
Of course in an ideal world, when the law is enforced, those kind of things will not happen.
Reference:
(Chinese) In this post, a Chinese bank executive describes that the future earning of a bank has already been determined in advance.
(Chinese) Lang Xian Ping (see item 3) describes the “GDP is the king” policy in China and its effect in economy. Link here.
