Evaluating Financial Reporting Quality

In the context of financial reporting quality, companies often face pressures that can compromise the integrity and reliability of their financial statements. These pressures can stem from management incentives, market expectations, or even economic conditions. As part of the assessment of a company's financial reporting quality, analysts look at certain indicators that may suggest potential manipulation or undue influence on the financial results.

Consider the following scenarios involving three different companies:

Company A has consistently shown strong revenue growth, but its operating margin has significantly declined, leading to concerns about the sustainability of its growth. Company B has reported extraordinary gains from the sale of an asset, which represents a large percentage of its net income for the year but has little recurring nature. Company C has a history of engaging in related-party transactions that are not fully disclosed.

Based on these examples, which company likely exhibits the lowest reporting quality?