You must have Credits on your Balance to download this sample
Earnings Management: The Continuum From Legitimacy to Fraud
Finance & Accounting
Pages 6 (1506 words)
Annotated Bibliography Earnings Management: The Continuum between Legitimacy and Fraud Bochner, S., & Clark, D. (2009). Securities Disclosure: When is Managing to a Forecast Illegal “Earnings Management.” The Corporate and Securities Law Advisor, Vol. 22(5).
The paper goes on to state that, in some instances, managing earnings to conform to forecasts is not illegal is the accompanying accounting and disclosure rules are followed. The authors then go on to discuss the instances where the line between legitimacy and fraud might be crossed in earnings management, which is also a discussion of the continuum between legitimacy and fraud. Since management of forecasts is an important part of forecasts, some accountants and managers sometimes fail to distinguish between the legal and fraudulent. Chen, C., Huang, S., & Fan, H. (2012). Complementary Association between Real Activities and Accruals-Based Manipulation In Earnings Reporting. Journal of Economic Policy Reform, Vol. 15(2). Pp. 93-108. The authors cite previous studies that developed a relationship between real activities and accrual-based earnings. This study aims to capture the indicators of manager’s behaviors in boosting or suppressing earnings, so as to determine whether real activities or accrual base earnings are the main motivator of earnings management. In this case, the authors studied Taiwanese firms in finding the relationship between real activities and discretionary accruals in the firm. ...
Not exactly what you need?