In the financial markets, a lot rides on the word of a company’s top executives. If a CEO tells a lie, a lot of shareholders can get hurt.

Now, after studying thousands of corporate earnings calls, two researchers from Stanford University think they’ve come up with a way to tell when senior executives are fibbing.

It’s a question that people have been wrestling with for as long as humans have been interacting with each other.

“I think since the Garden of Eden we’ve been trying to figure this out — who’s lying and who’s not lying,” says David Larcker, a professor of accounting at Stanford’s Graduate School of Business.

How Can You Tell When A CEO Is Lying?
Jim Zarroli
NPR , October 18, 2010

Category: Corporate Management, Video

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3 Responses to “How Can You Tell When A CEO Is Lying?”

  1. CTB says:

    How can you tell when a CEO is lying? His mouth is moving!

  2. Todd says:

    Saw this from PK as a link list to a WSJ article back in august.

    Also this is reminding me of Jobs rant earlier this week. Android has him worried. Are we getting close to peak AAPL price.

  3. jdjed says:

    Just listen to the CEOs back during the height of the .COM boom

    The best tool would be more prison terms