Exploring the Influence of Earnings Management on Investor Perception and Stock Market Valuation Trends

Posted: Oct 18, 2012

• Sebastian Gonzalez
• Sebastian Harris
• Sebastian Taylor

Abstract

The complex interplay between corporate earnings management practices and investor perception represents a critical frontier in financial accounting research. Earnings management, defined as the strategic manipulation of financial reporting within the boundaries of accounting standards to achieve specific objectives, has traditionally been studied through the lens of agency theory and information asymmetry. However, the conventional approaches have largely overlooked the dynamic, multi-faceted nature of how investors process and respond to manipulated financial information in real-world market conditions. This research addresses this gap by developing an innovative