Evaluate environmental factors that contribute to corporate management’s need to manage corporate earnings to align with market expectations indicating the potential long-term risks to financial performance and sustainability.
Asses ethical complexities related to managing corporate earnings determining whether or not investors and stakeholders are accepting of this behavior. Assuming that you are in a position to make corporate financial decisions are you to engage in earnings management and why?
Based on your review of the Dow Jones Industrial Average performance trends from 1900 to the present, what conclusions can you draw and how may this impact your future decision to invest in the Dow Jones Index or companies. Provide support for your decision.
Based on your review of the current company composition of the Dow Jones Industrial Average, evaluate the company you believe creates the most and least value to the index. Provide a rationale for your decision.