INTERNATIONAL UNIVERSITY COLLEGE Sofia “Earnings management‚ in exchange listed companies‚ is not fraud but a case of caveat emptor for investors” Coursework in BUSINESS FINANCIAL CRIME Student registration No: 479866 Program: International Finance and Trade‚ Level 2 Lecturer: A. Paparizov “Earnings management‚ in exchange listed companies‚ is not fraud but a case of caveat emptor for investors” With the development of the stock markets and the huge grow in the volume of money traded
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INTRODUCTION The exceptions to the rule of caveat emptor have now become more prominent than the rule itself. The rule owes its origin to the times when nearly all sales took place in open market. The buyer and seller came face to face‚ the seller exhibited his goods‚ the buyer examined them and bought them if he liked. But as trade grew and assumed global dimensions‚ it became difficult for the buyer to examine the goods beforehand. Also the modern goods are complex in structure it is seller who
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Introduction The term “CAVEAT EMPTOR” indicates let ’buyer bewares.’ This rule used to generally apply to all sales‚ especially between individuals. It gives the buyer full responsibility for determining the quality of the goods in question. The seller generally has no duty to offer warranties or to disclose defects in the goods. However‚ as time goes by‚ this concept has been modified by various state and federal laws as well as principles such as consumer protection and disclosure statutes and
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spent almost thirty years meticulously copying the paintings and various artwork of masterminds such as Rembrandt and Hieronymus Bosch. Many have differing views as to how or why Perenyi’s criminal actions began‚ but the risk factors present in Caveat Emptor: The Secret Life of an American Art Forger provide some insight into the early beginnings of the new life Ken Perenyi submerged himself into. Risk factors play an extremely significant role in determining the outcome of future behaviors for human
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to their consumers. Consumers form expectations about the products they are going to buy based on those claims and thus‚ leads them enter into a buying contract. The company has the duty to provide consumers what they pay for. However‚ consumers today were assumed to be wise‚ knowledgeable and doubtful. The doctrine of caveat emptor‚ meaning “let the buyer beware”‚ proclaims that consumers were entitled to buy at their own risk unless a warranty is given by the sellers. It was because that the consumers
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respect. Caveat emptor embodies this attitude. At the same time‚ caveat emptor raises important questions about whether an ideological perspective of humans as free individuals with dignity can be applied without any restriction‚ especially when the humans involved include the elderly and young children. In a fast-moving economy‚ caveat emptor becomes more complicated as transactions no longer involve explicit contracts‚ and instead‚ an implied contract becomes the norm. Caveat emptor is a Latin
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| "Evaluate the notion of "caveat emptor". Does a business have an obligation to manufacturer products that are as safe as possible for consumers and society in general? Use ethical theories to justify your argument." | | | | Introduction This essay aims to evaluate the notion of "caveat emptor" and examine the obligation that businesses have to produce a product which is safe for consumers and society in general. This essay will define caveat emptor‚ examine the approaches used
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Earnings Management can be for positive or for fraudulent purposes. This project explores the various methods in which firms engage in Earnings Management and different models which may explain the various factors effecting Earnings Management. | TABLE OF CONTENTS Introduction 3 Revenue Management 3 Earnings Management 3 Motives 5 Instruments 5 Project Methodology 8 Objective 8 Scope 8 Methodology 8 Analysis 9 Model 1 9 Model 2 14 Model 3 21 Satyam Case Analysis: 28
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Is earnings management good or bad? Who (or which part of corporate governance mechanisms) is responsible to constrain earnings management? To what extent can the auditor constrain earnings management? Propose some methods for the auditors to detect and constrain earnings management. Does market react to firm’s earnings management behavior? In order to discuss earnings management and what its affects are on business and whether or not it’s a good thing‚ one must first understand what earnings management
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European Journal of Business and Management ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol 4‚ No.1‚ 2012 www.iiste.org Earning Management and Dividend Policy: Empirical evidence from Pakistani listed companies Jahanzaib Haider (Corresponding author) Bahaudin Zakariya University‚ Multan Sub-Campus‚ Dera Ghazi Khan‚ Pakistan. Tel: 92-331-3312626‚ E-mail: haider_jahanzeb@yahoo.com Akbar Ali Bahaudin Zakariya University‚ Multan‚ Sub-Campus‚ Dera Ghazi Khan‚ Pakistan. Tel: 92-331-7304678‚ E-mail:
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