How would you respond to this post?

Investors typically seem to prefer businesses with a stable earn track. If true, that would encourage companies to increase their earnings. Under GAAP, there are many choices for how the company releases its financial statements. Although not the reason for the decisions of GAAP, one consequence is the willingness of a corporation to control sales which is not an ethical decision. Even though earnings and cash flow are often related, management of earnings should have little impact on cash flow (except for tax consequences). Shareholder capital can be enhanced, if the investor is "fooled" and needs stable earnings at least temporarily. Nevertheless, despite the questionable ethics of this procedure, if the practice is revealed the company and shareholders will lose value. The ability to meet or exceed the earnings set is seen as being one of the greatest reasons to control earnings. When a decrease in market capitalization happens, it will generally result in the company's not achieving the target earnings. Some of the methods or strategies that financial managers follow are changing the method of depreciation or adjusting the method of inventory valuation. It generally does not affect the cash flows but somehow affects the wealth of the shareholder.