earnings manipulation

Earnings manipulation involves carefully adjusting a company's financial reports to make its financial performance appear better or worse than it actually is. This can be done through accounting tricks, timing sales or expenses, or misclassifying transactions. The goal might be to attract investors, meet targets, or influence stock prices. While some adjustments are legitimate, deliberate manipulation can mislead stakeholders about the company's true health, potentially leading to incorrect investment decisions or regulatory issues. It’s important to scrutinize financial statements for transparency to accurately understand a company's real financial position.