Prior research suggests that Big-4 auditors fail to curb classification shifting in the countries with weak legal institutions. However, it is not known whether the auditors are unable to detect the use of this earnings ...

Manuscript Type: Empirical Research Question/Issue: We examine whether the state-owned enterprises (SOEs) are more likely to manipulate operating cash flows than private-owned enterprises (POEs). We also test whether the ...

McVay (2006) presents evidence that managers inflate core earnings by shifting operating expenses to special items. In this paper, we improve her model to estimate core earnings by controlling for a firm’s fundamental ...

Purpose - This paper examines whether firms in the decline stage of life cycle manipulate core or operating income through misclassification of operating expenses as income-decreasing special items. Design/methodology/approach ...

Purpose – This paper aims to examine whether financially distressed firms manipulate core or operating income through the misclassification of operating expenses as income-decreasing special items. Design/methodology/approach ...

This study provides empirical evidence that across firm life cycle there is considerable variation in financial reporting quality. Specifically, the focus is on matching quality captured by the contemporaneous correlation ...

Accounting frauds like Enron in the United States and Satyam in India are likely to have occurred due to the failure of firm-level corporate governance mechanisms in constraining unethical financial reporting practices. ...

We find that the existing accounting standards, which mandate the firms in the Construction Industry to follow the Percentage of Completion Method in order to recognize revenue, aid the management in managing earnings. We ...

This short case provides the abridged income statements and balance sheets for two recent years for two public sector banks - Bank of Baroda and State Bank of India. The trends in numbers and few ratios have also been ...