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Gross Profit Manipulation: Impact of Product Market Competition
(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 ...
Does good corporate governance constrain cash flow manipulation? evidence from India
(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 ...
Classification Shifting: A Comprehensive Model to Estimate Unexpected Core Earnings
(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 ...
Misclassification of Cash Flows in India: Impact of Weak Governance
(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 ...
Classification Shifting: Impact of Financial Distress
(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 ...
Misclassification of Cash Flows Before Debt Issuance
(Indian Institute of Management Ahmedabad, 2013)
Misclassification of Special Items
(Indian Institute of Management Ahmedabad, 2013)
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; ...