Browsing Working Papers by Author "Nagar, Neerav"

Now showing items 1-11 of 11

    • Are auditors unable to detect classification shifting or merely not willing to report it? evidence from India 

      Desai, Naman; Nagar, Neerav (Indian Institute of Management Ahmedabad, 2016-03)
      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 ...

    • Cash flow manipulation in state-owned enterprises 

      Nagar, Neerav; Arora, Jaskiran (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 ...

    • Classification shifting: do managers’ real actions matter? 

      Nagar, Neerav; Sen, Kaustav (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 ...

    • Classification shifting: Impact of firm life cycle 

      Nagar, Neerav; Sen, Kaustav (Indian Institute of Management Ahmedabad, 2016-03-04)
      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 ...

    • Do managers manipulate gross profits? role of product market competition 

      Nagar, Neerav (Indian Institute of Management Ahmedabad, 2016-03)
      Gross profits being a part of the sustainable profits of the firm are monitored by investors and analysts. This study examines whether managers manipulate gross profits by misclassifying costs of goods sold as other operating ...

    • Does good corporate governance constrain cash flow manipulation? evidence from India 

      Nagar, Neerav; Raithatha, Mehul (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. ...

    • Earnings management in the construction industry 

      Nagar, Neerav; Tatiparti, Venu Madhav (Indian Institute of Management Ahmedabad, 2016-03)
      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 ...

    • Earnings management strategies during financial distress 

      Nagar, Neerav; Sen, Kaustav (Indian Institute of Management Ahmedabad, 2016-02-11)
      We examine whether financial distress and its severity have a role to play in managers’ decisions with respect to the choice of earnings management strategies. Our results suggests that firms in initial stages of distress ...

    • Firm life cycle and real - activity based earnings management 

      Nagar, Neerav; Radhakrishnan, Suresh (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 ...

    • Investor protection and cash flow misclassification 

      Nagar, Neerav; Kaustav, Sen (Indian Institute of Management Ahmedabad, 2015)
      Research Question/Issue: We analyze whether cash flow misclassification is likely to be higher in the countries with weak investor protection. We also test whether managers use different strategies to misclassify cash ...

    • Stewardship value of income statement classifications: an empirical examination 

      Nagar, Neerav; Arya, Avinash (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 ...