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.
