BUSINESS SCHOOL MBA: ACCOUTING THEORY 1 – (ADMN 631) LECTURE: JAMES KWAME OTIEKU A PRESENTATION ON EARNINGS MANAGEMENT AND EXECUTIVE COMPENSATION BY EMMANUEL MENSAH ID NO: 10328957 AND PETER OPATA NYAKO ID NO: 10329653 1st October 2009 EARNINGS MANAGEMENT AND EXECUTIVE COMPENSATION Introduction Accounting standards define the accounting language that management uses to communicate with the firm’s external stakeholders. By creating a framework that independent auditors
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(2006) 511–529 www.elsevier.com/locate/jfec CEO incentives and earnings management$ Daniel Bergstressera‚Â Thomas Philipponb a Harvard Business School‚ Boston MA 02163‚USA NYU Stern School of Business‚ New York‚ NY 10012‚USA b Received 25 September 2003; accepted 13 October 2004 Available online 22 December 2005 Abtract We provide evidence that the use of discretionary accruals to manipulate reported earnings is more pronounced at firms where the CEO’s potential total compensation
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2008 pp. 757–787 Real and Accrual-Based Earnings Management in the Pre- and Post-Sarbanes-Oxley Periods Daniel A. Cohen New York University Aiyesha Dey University of Chicago Thomas Z. Lys Northwestern University ABSTRACT: We document that accrual-based earnings management increased steadily from 1987 until the passage of the Sarbanes-Oxley Act (SOX) in 2002‚ followed by a significant decline after the passage of SOX. Conversely‚ the level of real earnings management activities declined prior to
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KNUST SCHOOL OF BUSINESS Earnings management is in the best interest of shareholders. Discuss ACF 351 CORPORATE GOVERNANCE ACCOUNTING & FINANCE BY‚ DUNOO SELASI LARRY Earnings management is in the best interest of shareholders. Discuss Earnings‚ sometimes called profit‚ net income are the single most important item in the financial statements. They indicate the extent to which a company has engaged in value added activities‚ they are signals that helps direct resource allocation
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Accounting has a long history of being an ethical profession. In recent years‚ however‚ some companies have asked their accountants to help "manage earnings." What does it mean to manage earnings? Who is more likely to be involved in such a situation‚ the financial accountant or the management accountant? Why? Do you believe that managing earnings is ethical? Discuss the rationale for your answer. The major role of financial reporting is to effectively communicate financial information
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Identify the strengths and weaknesses of discretionary accruals models to identify earnings manipulation: Discretionary Accrual = non-obligatory expense (such as an anticipated bonus for management) that is yet to be realized but is recorded in the account books. Accrual Accounting = an accounting measure that measures the performance and position of a company by recognizing economic events regardless of when cash transactions occur. The general idea is that economic events are recognized
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Earnings Management During Import Relief Investigations “Earnings Management During Import Relief Investigations” was written by Jennifer J. Jones. It illustrates her study and examination of the effects of managing reported earnings to alleviate the costs of tariffs and quota increases on import businesses. The ITC or (United States International Trade Commission) conducts relief investigations on companies that import goods so they can make a determination on the import relief rate. The ITC sets
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Opening Thoughts. Manipulation. The Webster dictionary says “to control or play upon by artful‚ unfair‚ or insidious means especially to one ’s own advantage” (Merriam-Webster) So what does this mean in the context of communication. It would appear that to manipulate someone is sinister in nature. That it is something bad or evil we do to other people for our own gain. But is it? Throughout this paper I hope to disprove this fact that manipulation is only used for malicious intent. Or maybe I’ll
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Can institutional investors restrain earnings management activities in weak investor protection countries? The role of foreign and domestic institutional investors UGUR LEL* This draft: February 2013 Abstract This paper investigates the role that institutional investors play in restraining earnings management activities of firms under varying investor protection environments. Distinguishing between foreign and domestic institutional ownership in a sample of about 190‚000 firm-year observations
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Cost Management is a combination of philosophy‚ an attitude and a set of techniques to create more customer value and to achieve lower cost. It goes beyond historical measurements and reporting to assess the impacts of current and proposed decisions. Activity Based Management (ABM) is one of the major disciplines of cost management that focuses on the management of activities as a way to improve customer value and profit. The Basics Concept of Activity Based Management The battle to sustain
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