1. Earnings management
Additional research has shown that the market severely punishes companies who miss projected quarterly earnings targets by as little as a penny. The existence of earnings management within the equities markets is a proven fact. Professionals debate about the ethical issues surrounding an executive management team of a company actively managing earnings toward a predetermined target. ... But even if everything works out as management hopes and no one is the wiser, Arthur Leavitt, former SEC chairman, argues that the integrity of the market is compromised. ... But does earnings managemen...
- Word Count: 568
- Approx Pages: 2
- Has Bibliography
- Grade Level: Undergraduate