Understanding Earnings Management: A Christian Perspective

The Good Steward Online Llc15 Nov, 2025Finance

When a company’s earnings fall short of expectations, some leaders may look for ways to “fix” the numbers, at least on paper. This practice, known as earnings management (EM), involves using accounting techniques or business decisions to present financial results in a more favorable light. While these actions may technically comply with accounting rules, they often raise ethical concerns and undermine trust.