managed earnings

Managed Earnings

The practice of the managers of a company performing any action that misrepresents the company's financial health. The practice of managed earnings may include falsely inflating stock prices by improperly reporting income, failing to capitalize expenses, hiding losses in subsidiaries, or prematurely recognizing revenue. See also: Sarbanes-Oxley Act of 2002, Aggressive accounting.

managed earnings

Corporate earnings that have been manipulated in order to produce a desired result. Earnings can be managed utilizing a variety of both acceptable and questionable accounting methods. For example, a company might time gains and losses from asset sales in order to produce steadily rising earnings.
References in periodicals archive ?
005) as these firms are likely to have managed earnings to marginally exceed the positive earnings threshold during these years.
This is based on the tailwinds of managed earnings and a US Fed that is reluctant to end the easy money despite the obvious need to do so.
We find that firms who managed earnings before the adverse event had less negative reaction to the adverse event than those who did not.
In addition, many contracting incentives are tied directly or indirectly to earnings based measures which also provide strong incentives for managed earnings.
Only 1,259 (43%) of 2,931 firms managed earnings by choosing income decreasing reserve account changes.
Overall, Siuslaw Financial managed earnings of 27 cents per share for the quarter.
The "return" numerator of net operating profit after taxes (NOPAT), based on managed earnings, is suspect because of the many deficiencies of accrual-based earnings.
There is no evidence of a positive (negative) PEAD for those firms with large positive (negative) earnings changes that are least likely to have managed earnings downward (upward).
As commonly known, many contracting motivators are also tied to earnings based measures which again provide strong motivators for managed earnings.
But the bank still managed earnings for its investors of 28 cents per share for the fourth quarter and $1.
Also included in this release are pro forma non-GAAP financial results which reflect the impact of previously announced acquisitions and adjustments for certain charges to demonstrate the business operations' managed earnings.
Managers of issuing firms may have managed earnings for reasons other than trying to induce investor optimism.