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Finance ABC

19. Financial Statement Manipulation and Earnings Quality

Welcome to Finance ABC. I’m your host, Emma Lai, and today, we’re diving into the fascinating and sometimes murky world of financial statement manipulation and earnings quality. When companies release their financial statements each quarter, investors and analysts scrutinize them to get a sense of the company’s health, performance, and prospects. But what if the numbers are dressed up, stretched, or even obscured? That’s where the concept of earnings quality and the risk of manipulation come into play.