What Managers Should Know About Earnings Management — Its Prevalence, Legality, Ethicality, and Does It Work?
Paquita Y. Davis‐Friday
(Mendoza College of Business, University of Notre Dame, Notre Dame)
Thomas J. Frecka
(Mendoza College of Business, University of Notre Dame, Notre Dame)
661
Abstract
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.
Citation
Davis‐Friday, P.Y. and Frecka, T.J. (2002), "What Managers Should Know About Earnings Management — Its Prevalence, Legality, Ethicality, and Does It Work?", Review of Accounting and Finance, Vol. 1 No. 1, pp. 57-71. https://doi.org/10.1108/eb026979
Publisher
:MCB UP Ltd
Copyright © 2002, MCB UP Limited