Identify conditions that would lead an analyst to expect that management might attempt to manage earnings upward

A prime example of a condition that management might manage earnings upward is to influence stock prices. Management may attempt to manage the earnings upward to improve the stock prices to depict the stable performance of the stocks (Whalen, Baginski, & Bradshaw, 2018). Managers might try to manage earnings to improve benefits for the shareholders and stakeholders. However, this is not a wise decision because it obscures how the firm is performing.

Timothy

References

Whalen, J., Baginski, S., & Bradshaw, M. (2018). Financial reporting, financial statement

analysis and valuation (9th ed.). [Adobe Digital Editions version]. Retrieved from

https://www.gcumedia.com/digital-resources/cengage/2018/financial-reporting-financial-

statement-analysis-and-valuation_9e.php