Quality of Earnings - market price of their stock and the...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Quality of Earnings So far, our discussion has highlighted the importance of information in the income statement for investment and credit decisions, including the evaluation of the company and its managers. 2 Companies try to meet or beat Wall Street expectations so that the
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: market price of their stock and the value of management’s stock options increase. As a result, companies have incentives to manage income to meet earnings targets or to make earnings look less risky. The SEC has expressed concern...
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online