Ethics in Corporate Finance Earnings Management essay
Earnings management is a strategy to purposefully manipulate a company's profits so that the numbers correspond to a predetermined goal. business finance, taxes, lending and personal finance. The importance of ethics in the financial reporting process has long been discussed in practice and academia. Unethical activities such as financial fraud and financial reporting irregularities can be attributed to ethical lapses. It is also well known that one of the most provocative topics in accounting and finance is: Based on the earnings management practices in emerging markets, the purpose of this study is to analyze their market social impacts on corporate reputation. Furthermore, this article illustrates this impact in the context of family businesses that are led and controlled by family members, whose primary interest is long-term survival. The purpose of this article is to examine the impact of earnings management on financial performance. The authors also investigate whether corporate social responsibility has a moderating effect. The sample companies listed on the financial markets of European countries and the data scope. The results indicate a significant negative correlation between ESG information and cash holdings, implying that ESG performance can be used by management to resolve stakeholder disputes. This article aims to explore the relationship between sustainability disclosure practices and earnings management in the Jordanian context. Based on an analysis of non-financial companies listed on the ASE, over the period -2020. The findings showed that companies are complying with sustainability disclosure. In terms of earnings management, we examine earnings smoothing and earnings aggressiveness. We find that Asian companies with relatively good CSR are significantly less involved in earnings management. Investor protection is also negatively associated with earnings management. We note that this is very case sensitive and that a number of common definitions of earnings management have been constructed, covering a continuum from accounting choices, through income smoothing, through earnings management to earnings manipulation. The definitions assume management of profits on an accrual basis rather than management of real profits, that is, making investment decisions. This study proposes and tests a model of the relationships between corporate accountants' perceptions of the ethical climate in their organization, the perceived importance of business ethics and social responsibility, and earnings management decisions. Based on a field survey of professional accountants employed by private companies, earnings management persists despite regulatory reforms aimed at countering aggressive financial reporting, and remains a concern for practitioners, regulators and standard setters. To provide insight into this practice and how to mitigate it, we conduct an experiment to examine the impact of two independent variables on CFO discretion. However, in the case of corporate philanthropy, people or organizations can and do contribute directly to social causes. called cause-related marketing. Nowadays there are many financial frauds and failures taking place, therefore it is the duty of accountants to emphasize on issues related to earnings management and revenue, related: Why managers should involve their team in the decision-making process...