https://www.alphainvesco.com/blog/wp-content/uploads/2019/04/financial-shenanigans.jpg 499 336 Akshay Satija https://www.alphainvesco.com/blog/wp-content/uploads/2018/11/logo-2.png Akshay Satija2019-04-18 12:27:022019-04-18 17:10:11Financial Shenanigans : How To Detect Financial Reporting Tricks - Part 2
Investors rely on the information that they receive from corporate executives to make informed and rational securities selection decisions. This information is assumed to be accurate, whether the news is good or bad. While most corporate executives respect investors and their needs, some dishonest ones hurt investors by misrepresenting the actual company performance and manipulating the company’s declared earnings. Part 2 fleshes out the Earnings Manipulation (EM) Shenanigans which inflate current period earnings and suggests how skeptical investors can ferret out these tricks to avoid losses.