Therefore, this conflict must be resolved by limiting the improper practices of managers as agents in companies and achieving maximum compatibility of interests between them and clients, such as investors, by addressing the problem of information asymmetry Tamimi and Saedi, The practice of corporate management with the aim of maximizing their utility at the expense of shareholders' interests is referred to as earnings management. Corporate management can resort to several practices to positively influence the net profit figures shown in the company accounts.
Although the management gains from this practice, it is at the expense of other stakeholders.
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Therefore, the issue of profit or earnings management can be viewed from two different perspectives. The first is the importance of adhering to the accepted accounting principles. An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while. Read preview. Ruefli Quorum Books, Read preview Overview.
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