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Millennium series: Parsing earnings management
- Article from:
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The CPA Journal
- Article date:
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July 1, 2001
- Author:
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Copyright informationCopyright New York State Society of Certified Public Accountants Jul 2001. Provided by ProQuest LLC. (Hide copyright information)
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This month, two articles share he Millennium Series spotlight as we focus on earnings management. The subject has received a lot of attention from regulators and the media; our authors try to get to the root causes of the phenomenon. In "Twenty Pressures to Manage Earnings" (page 32), author James R. Duncan provides a taxonomy of the pressures that lead managers to inappropriately manage earnings. He breaks them down into external forces, such as analysts' estimates and contractual obligations; cultural forces, such as management compensation and corporate oversight; and personal forces, such as the desire for a promotion or the fear of losing one's job. Although these ...