Exercise | September 2006

Earnings Management Exercise

by Malcolm P. Baker


Students act as managers or investors. Managers have the ability to manipulate reported earnings, and investors must bid for shares taking this into account.

Keywords: Earnings Management; Value; Stock Shares; Opportunities; Bids and Bidding; Reports;


Baker, Malcolm P. "Earnings Management Exercise." Harvard Business School Exercise 207-034, September 2006.