Friday, February 7, 2020

A Problem In the Field of Finance Annotated Bibliography

A Problem In the Field of Finance - Annotated Bibliography Example This will provide important information and guidance about scholarly sources relating to earning management. This journal article examines the relationship between firm size and earnings management. To this end, the article is based on an empirical study into small and large organizations to identify which organizations are more prone to earnings management. The study indicates that both large and small organizations undertake earnings management to avoid presenting negative results. The study shows that most small firms undertake earnings management to avoid reporting losses. On the other hand, larger and medium sized organizations use aggressive earning management to avoid profit decreases than smaller firms. The journal involves a study of the relationship between earnings management and accounting standards. It identifies that earnings management are increasingly done in areas where organizations and business are allowed to pass judgments. These areas are increasingly being regulated by accounting standards. However firms continue to use methods of overriding accounting standards because most of these elements and aspects of earnings management causes firms to incur serious losses. Fundamentally, this journal examines the relationship between earnings management and corporate governance. It answers the question of which practices of earnings management affects earnings management and how. The study critically evaluates 100 S&P firms and their accounting practices and auditing trends between 1994 and 2003. The study identifies that in organizations where there is a strong presence of institutional investors, earnings management are minimal because there is control and care that is induced in the affairs of the firm. However, where there are many individual shareholders, earnings management is common. This study involved an examination of elements of managers’ manipulation of

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