Question
Several situational factors are likely to influence judgments as to whether earnings management actions are deemed (un) ethical including: Single choice. A. The direction of
Several situational factors are likely to influence judgments as to whether earnings management actions are deemed (un) ethical including:
Single choice.
A. The direction of the manipulation (boost, shrink, or merely smooth earnings), the size of the effect (materiality),
B. the timing (quarter vs year end, random timing vs immediately preceding a bond offering or stock option grant);
C. the method used; the managers' intent regarding the informativeness of the number (and disclosures); the clarity of the rules prohibiting the actions; and the degree of repetition
D. All of these
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