Browsing Faculty Publications (Bibliographic) by Author "Nagar, Neerav"
Now showing items 1-20 of 21
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Classification Shifting: A Comprehensive Model to Estimate Unexpected Core Earnings
Nagar, Neerav (Indian Institute of Management Ahmedabad, 2013)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 ... -
Classification Shifting: Impact of Financial Distress
Nagar, Neerav (Indian Institute of Management Ahmedabad, 2013)We contribute to the literature on earnings management by the financially troubled firms, and present evidence that the managers of such firms are more likely to inflate core or operating income as compared to the healthy ... -
Do Big 4 auditors limit classification shifting? evidence from India
Nagar, Neerav; Desai, Naman; Jacob, Joshy (Elsevier, 2021-01-20)Extant research suggests that Big 4 auditors compared to non-Big 4 auditors act as a superior deterrent to accrual-based earnings management. We extend this research to another form of earnings management, classification ... -
Do financially distressed firms misclassify core expenses?
Nagar, Neerav; Sen, Kaustav (Emerald Publishing, 2017)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 ... -
Does financial reporting quality vary across firm life cycle?
Krishnan, Gopal V.; Myllymäki, Emma-Riikka; Nagar, Neerav (Journal of Business Finance and Accounting, 2020-10-28)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 ... -
Does good corporate governance constrain cash flow manipulation? evidence from India
Nagar, Neerav; Raithatha, M. (Emerald Group Publishing Ltd., 2016)Purpose: The purpose of this paper is to examine whether firm-level corporate governance measures and regulatory reforms constrain manipulation of operating cash flows, an important firm performance indicator. Design/met ... -
Earnings management in India: managers' fixation on operating profits
Nagar, Neerav; Sen, Kaustav (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 ... -
Earnings management strategies during financial distress
Nagar, Neerav; Sen, Kaustav (IUP Journal of Accounting Research & Audit Practices, 2018-07) -
Financial Analysis of Banks
Nagar, Neerav (Indian Institute of Management Ahmedabad, 2019-03-27)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 ... -
Financial Analysis of Banks: A Teaching Note
Nagar, Neerav (Indian Institute of Management Ahmedabad, 2019-03-27) -
Gross profit manipulation through classification shifting
Nagar, Neerav; Poonawala, Sakina (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 ... -
Gross Profit Manipulation: Impact of Product Market Competition
Nagar, Neerav (Indian Institute of Management, Ahmedabad, 2013)This study presents first evidence on the misclassification of income statement items by mangers in order to inflate gross profits. Specifically, managers classify costs of goods sold as other operating expenses thereby ... -
How does regulation sffect the relation between family control and reported cash flows? comparative evidence from India and the United States
Nagar, Neerav; Sen, Kaustav (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; ... -
Identifying the Industry - A Short Case on Financial Statement Analysis
Nagar, Neerav (Indian Institute of Management Ahmedabad, 2019-03-29)This short case provides income statements and balance sheets for a recent year for 7 Indian firms from 7 industries in Exhibits 1 and 2. These firms belong to the following industries.1 Airline2. Banking 3. Information ... -
Identifying the Industry - A Short Case on Financial Statement Analysis: A Teaching Note
Nagar, Neerav (Indian Institute of Management Ahmedabad, 2019-03-29) -
Internal corporate governance and cash flow manipulation
Nagar, Neerav; Raithatha, Mehul (Emerald, 2022-10-14)Purpose The authors examine whether internal corporate governance mechanisms are effective in curbing cash flow manipulation through real activities, misclassification, and timing. Design/methodology/approach The ... -
Misclassification of Cash Flows Before Debt Issuance
Nagar, Neerav (Indian Institute of Management Ahmedabad, 2013) -
Misclassification of Cash Flows in India: Impact of Weak Governance
Nagar, Neerav (Indian Institute of Management Ahmedabad, 2013)We present first evidence that the manipulation of operating cash flows through misclassification is likely to be more common in the countries with weak investor protection and governance. We also show that managers ... -
Misclassification of Special Items
Nagar, Neerav (Indian Institute of Management Ahmedabad, 2013) -
A research note: are auditors unable to detect classification shifting or merely not willing to report it? evidence from India
Desai, Naman; Nagar, Neerav (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 ...