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Now showing items 11-20 of 32
Gross profit manipulation through classification shifting
(Elsevier, 2018-09-29)
The existing research on classification shifting has examined the manipulation of core earnings through shifting of core expenses to special items keeping the GAAP earnings constant. We examine the manipulation of gross ...
A research note: are auditors unable to detect classification shifting or merely not willing to report it? evidence from India
(Elsevier Ltd, 2016)
Research indicates that auditors fail to curb classification shifting in countries with relatively weaker legal institutions. However, it is not known whether auditors are unable to detect misclassifications or if they are ...
How does regulation sffect the relation between family control and reported cash flows? comparative evidence from India and the United States
(Blackwell Publishing Ltd, 2016)
Manuscript Type: Empirical. Research Question/Issue: We conduct a two-country study to understand (i) how family and non-family firms engage in classification shifting to manage reported operating cash flows in each country; ...
Earnings management in India: managers' fixation on operating profits
(Elsevier Ltd, 2016)
We present evidence that the managers of Indian firms fixate on operating profits, and thus manage such earnings. Specifically, they shift operating expenses to income-decreasing special items in order to inflate operating ...
Stewardship value of income statement classification: an empirical examination
(Sage Publications, 2018-08-16)
This study investigates the use of earnings components in setting CEO compensation and explores how persistence and controllability affect it. The results indicate that compensation committees do accord differential treatment ...
Firm life cycle and real - activity based earnings management
(Indian Institute of Management Ahmedabad, 2015-12-15)
We examine real-activity based earnings management, i.e., cuts in discretionary innovation/marketing spending and overproduction for meeting the earnings benchmark of avoiding losses across firms’ life cycle. We use the ...
Classification shifting: do managers’ real actions matter?
(Indian Institute of Management Ahmedabad, 2016-03)
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 ...
Cash flow manipulation in state-owned enterprises
(Indian Institute of Management Ahmedabad, 2016-03)
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 ...
Stewardship value of income statement classifications: an empirical examination
(Indian Institute of Management Ahmedabad, 2016-03)
A classified income statement has up to four distinct components of earnings - income from continuing operations, special items, discontinued operations, and extraordinary items. This study investigates how persistence and ...
Does good corporate governance constrain cash flow manipulation? evidence from India
(Indian Institute of Management Ahmedabad, 2016-03)
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. ...