Asian Journal of Management

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Earnings Management Practices in India:A Study on Selected Public Enterprises


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1 Tripura University [A Central University], Suryamaninagar-799022, India
     

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The present study attempted to explore the impact of discretionary accruals on earnings management practices among the Public Sector Enterprises (PSEs) in Indian. DeAngelo (1986) Model has been used for calculating discretionary accruals in regard to potential earnings management for the study. The sample was drawn from public enterprises in India during the year from 2003-04 to 2012-13. It also explores earnings management issues with respect to industry classification on the basis of service and non-service sectors and witnessed that the service sector industries under study are involve in income decreasing earnings management while non-service sector industries are reverse practice. Furthermore, it is also found that there is negative correlation between size of the firm and Discretionary accruals as proxy to earnings management during the study period.

Keywords

Discretionary Accrual, Earnings Management, Operating Cash Flow, Public Enterprise.
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  • Earnings Management Practices in India:A Study on Selected Public Enterprises

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Authors

Pranesh Debnath
Tripura University [A Central University], Suryamaninagar-799022, India

Abstract


The present study attempted to explore the impact of discretionary accruals on earnings management practices among the Public Sector Enterprises (PSEs) in Indian. DeAngelo (1986) Model has been used for calculating discretionary accruals in regard to potential earnings management for the study. The sample was drawn from public enterprises in India during the year from 2003-04 to 2012-13. It also explores earnings management issues with respect to industry classification on the basis of service and non-service sectors and witnessed that the service sector industries under study are involve in income decreasing earnings management while non-service sector industries are reverse practice. Furthermore, it is also found that there is negative correlation between size of the firm and Discretionary accruals as proxy to earnings management during the study period.

Keywords


Discretionary Accrual, Earnings Management, Operating Cash Flow, Public Enterprise.

References