“managing corporate earnings” please respond to the following:
The regulators might also have an influence on how corporate management reports its financials in order to protect themselves from retribution. This practice of “creative accounting” has the potential for long-term risks if not managed properly as it could lead to inaccurate projections leading investors astray while also creating an environment that encourages manipulation instead of transparency which is essential for ensuring capital markets continue functioning efficiently.
It is crucial for corporate managers to understand the environmental factors that could impact the management of corporate earnings. This will allow them to better manage any issues and prevent them from becoming bigger problems later.