1. Memo on "Earnings Management" Abuse Article
In other words, management is manipulating the numbers in order to meet the market expectation. ... Conclusion The underlying problem that created serious accounting scandals in the United States is the culture of today's Corporate America, which give management too much incentive to manipulate accounting figures. Management, whose compensation is tied to the stock price, tends to give way to the temptation to allegedly make up the numbers or get involved with insider trading. ... They must clearly realize that financial statements are the responsibility of the company's managemen...
- Word Count: 514
- Approx Pages: 2
- Has Bibliography
- Grade Level: Undergraduate