Earnings management - Definition

Earnings management is a strategy used by the management of a company to manipulate the company's earnings in Order to make the financials match market expectations. Earnings management usually involves the artificial increase (or decrease) of revenues, profits, or earnings per share figures through Accounting tactics that Range from normalization to deliberate modifications.

Manipulation of a company's financial earnings either directly or through indirect accounting methods is a form of creative accounting and is considered by the Securities & Exchange Commission to be "a material and intentional misrepresentation of results". When income smoothing becomes excessive, the SEC may issue fines.

Terms near "Earnings management"

Earnings momentum
Economic Calendar
Economic Indicator
Effective Exchange Rate
Efficient Market Theory
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