Earning Management of a Company

Earning Management of a Company

Introduction

Earning management means managing earnings of a business in its annual accounting report for a given period of time. Earning management takes place when financial managers try to manipulate the earnings, profits, revenues and earnings per share of a company by inflating and deflating.

Discussion

Are these Practices Ethical?

Earning management is a financial technique used by the financial managers of a company to intentionally manipulate the company's earnings. Income smoothing is the main purpose behind the practice of earning management (Giroux, 2004). To avoid positive or negative fluctuations in the earnings, companies strive ...