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According to cognitive dissonance theory, a disadvantage of the use of large rewards is that:
P/E Ratio
The price-to-earnings ratio, a valuation metric for stocks calculated by dividing the market value per share by its earnings per share.
EPS
Earnings Per Share, a measure of a company's profitability that is calculated by dividing its net income by the number of outstanding shares.
Stock Repurchase
The process of a corporation repurchasing its own stocks from the market to potentially boost the value of the remaining stocks.
Excess Cash
Additional cash held by a business that exceeds its operational and investment needs.
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