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 ?

Among the many beneficiaries of well managed earnings are income to fund the establishment of national child development centers.

The changing character of casinos Pagcor wins

Even if the larger managed earnings signal the firm's attractive investment opportunities (Linck et ah, 2013), creditors are less likely than stockholders to benefit from them as their payments are fixed and the new investment returns are uncertain.

Does earnings management relieve the negative effects of mandatory pension contributions?

In terms of market performance, he found that companies that artificially managed earnings were able to attract investors; however, in the long run, the market identified the procedure, pricing this practice and penalizing shares with worse cumulative performance.

Debt issues and earnings management

For instance, highly managed earnings can yield low-quality earnings (Lo, 2008, pp.121-151), as the "artificial" information may lead to an incorrect decision.

Earnings management and the effect of earnings quality in relation to bankruptcy level (firms listed at the tehran stock exchange)

They found that small companies managed earnings to avoid losses more frequently than large companies (Lee & Choi, 2002).

Manipulation of earnings through correction of prior period errors (AASB108): An empirical test

Sloan (1996), in the naive investor model, suggests "that investors 'fixate' on earnings, failing to distinguish fully between the different properties of the accrual and cash flow components of earnings." This view predicts that investors respond to the managed earnings, which contains abnormal accruals, as if this level of earnings would persist in the future.

Bidder earnings management, cynical targets and acquisition premia

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.

Waiting for Godot

We find that firms who managed earnings before the adverse event had less negative reaction to the adverse event than those who did not.

Do investors care about earnings management?

H1: Unregulated companies managed earnings and net assets to appear to be a more favorable investment.

Earnings management among firms during the pre-SEC era: a Benford's Law analysis

In addition, many contracting incentives are tied directly or indirectly to earnings based measures which also provide strong incentives for managed earnings.

Analysts' earnings forecasts: implications for managed earnings via pension expense

If earnings are managed through Sales Revenues, then the Jones Model will remove part of the managed earnings from the discretionary accruals.

How accurate are the discretionary accrual models?

Only 1,259 (43%) of 2,931 firms managed earnings by choosing income decreasing reserve account changes.

Japanese managers' earnings management using several different types of reserve accounts