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Can I read Impact of real earnings management on earnings persistence – evidence from India on EtoBox?
Impact of real earnings management on earnings persistence – evidence from India by Srikanth Potharla is a Business, Management and Accounting article available to read on EtoBox.
What is Impact of real earnings management on earnings persistence – evidence from India about?
## Purpose The present study aims to examine the relationship between real earnings management and earnings persistence and also to test how the group affiliation of the firms influences this relationship. ## Design/methodology/approach The study draws the sample of listed non-financial firms in the Indian market from the year 2011 to 2018 and applies panel least squares regression with industry and year fixed effects. Future performance of a firm is measured by one year leading value of return on assets. The interaction term of real earnings management and return on assets is used to measure the impact of real earnings management on earnings persistence. The firm-specific controlling variables are also included in the empirical model. The robustness of the results is tested by sub-dividing the sample into group affiliated and non-group affiliated firms. ## Findings The findings of the study reveal that opportunistic earnings management has a significant impact on earnings persistence when real earnings management is measured through abnormal increase in operating cash flows and abnormal reduction in discretionary expenditure. On the other hand, signalling earnings management has a
Who reads Impact of real earnings management on earnings persistence – evidence from India?
It is typically read by researchers, students, and practitioners in Business, Management and Accounting.
- Author
- Srikanth Potharla
- Publisher
- Emerald
- Published
- 2022
- Language
- EN
- Field
- Business, Management and Accounting (Social Sciences)