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

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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
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Unformatted text preview: market price of their stock and the value of managements 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...
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This note was uploaded on 03/08/2011 for the course ACCOUNTING 14 taught by Professor Saeedi during the Spring '11 term at Amirkabir University of Technology.

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