Collectively, our results indicate that equity incentives lead to incentives for earnings management. The game lets you manage an F1 team from the 1999 season, putting you in control of every aspect of the business. Calculate the values of Q 1, Q 2, Q, and P that maximize profit. This finding is consistent with the wealth of these managers being more sensitive to future stock performance, which leads to increased reserving of current earnings to avoid future earnings disappointments. F1 Manager 2000 from Intelligent Games is a decent F1 manager game that unfortunately was too bug-riddled in the first release to pose any real challenge to the superb Grand Prix Manager 2 game from Edcom/MicroProse. Chapter 10: Market Power: Monopoly and Monopsony 124 Quantity 100 200 300 400 500 600 70 140 700 Price 800 P M MC T Q T MC 2 MC 1 2 Q 1 MR D Figure 10.6.a b. Lustre recommends the best products at their lowest prices right on Amazon. Each car in F1 2018 is a faithful rendition of real-life motorsport racing, giving you control of awesome cars like the Mercedes, McLaren, Ferrari, and other brands. We also find that managers with consistently high equity incentives are less likely to report large positive earnings surprises. Fun experimentation with the team manager simulator. As expected, we find that managers with high equity incentives are more likely to report earnings that meet or just beat analysts' forecasts. TitleConsoleLoose PriceCIB PriceNew PriceA1 Spirit: The Way To Formula 1JP MSXArmored Core: Formula FrontJP Playstation 236.9944.99107.98Armored Core: Formula FrontPAL PSP6.939.5921. Using stock-based compensation and stock ownership data over the 1993-2000 time period, we document that managers with high equity incentives sell more shares in subsequent periods. Theyre designed to deliver: High quality and durability Accuracy, repeatability Reliability in tough environments Competitive pricing. We hypothesize that managers with high equity incentives are more likely to sell shares in the future and this motivates these managers to engage in earnings management to increase the value of the shares to be sold. This paper examines the link between managers' equity incentives-arising from stock-based compensation and stock ownership-and earnings management.