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Earnings Management Has Been Used To Boost Stock Prices So That Managers Can ...


Earnings management has been used to boost stock prices so that managers can profit from the share trading but in effect undermine the organization's value. In theory the use of earnings management helps firms to manipulate price earning ratios to, firstly show firm's potential activities, and secondly to restate the value of the firm. However, as a consequence, the earnings created theoretical growth in investment and...


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