169 CFOs Admit That A Chunk Of Companies Misrepresent Their Earnings

Chief financial officers on average believe a little more than 18 per cent of public companies misrepresent their economic performance, according to a recent survey by Emory and Duke University researchers (h/t WSJ’s Francesco Guerrera).

The survey ‘s 169 CFOs also said¬†outside observers find it hard to unravel earnings management, especially¬†when such earnings are managed using real actions.

They also said 10 per cent of firms misrepresent their earnings statements.

Here are the motivations they found companies would do so:

ISB

Photo: ISB

And here are the ways they said you can spot junk earnings reports:

ISB

Photo: ISB

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