What Managers Should Know About Earnings Management — Its Prevalence, Legality, Ethicality, and Does It Work?
The purpose of this paper is to summarize important information for managers, including research evidence related to the prevalence, legality, ethicality and other aspects of earnings management, to explain potential negative consequences of earnings management, and to offer suggestions for improved financial statement disclosure to enhance the transparency of financial reporting. We especially focus on income smoothing.
Related Questions
- Can you describe the management agreement that formalizes the relationship between real estate managers and property owners?
- Why do managers have to approve participation in the VSP? What level of management needs to approve my application?
- What is the difference between leaders and managers or leadership and management?
