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Earnings Management in Auto Sector Enterprises in India: The Corporate Governance Review

Author

Listed:
  • Sandeep Goel

    (Management Development Institute, Gurgaon, India)

Abstract

The evolution of corporate governance in India and globally is attributed to the manipulative practices by the corporate. The present paper analyzes the earnings management practices in diversified auto corporate enterprises in India. Indian auto sector has rapidly diversified in terms of its product range and the markets and therefore attracts issue of corporate governance on account of earnings management. Earnings management is evaluated and correlated on quality parameters of earnings and revenue. The results indicate accrual management in the sample companies and it is hoped the study improves investors' belief of a company's performance.

Suggested Citation

  • Sandeep Goel, 2015. "Earnings Management in Auto Sector Enterprises in India: The Corporate Governance Review," Oblik i finansi, Institute of Accounting and Finance, issue 3, pages 88-97, September.
    • Handle: RePEc:iaf:journl:y:2015:i:3:p:88-97
    as

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    File URL: http://www.afj.org.ua/pdf/304-upravlinnya-pributkom-na-pidpriemstvah-avtomobilnogo-sektora-indii-oglyad-korporativnogo-upravlinnya.pdf
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    File URL: http://www.afj.org.ua/en/article/304/
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    References listed on IDEAS

    as
    1. DeAngelo, Linda Elizabeth, 1988. "Managerial competition, information costs, and corporate governance : The use of accounting performance measures in proxy contests," Journal of Accounting and Economics, Elsevier, vol. 10(1), pages 3-36, January.
    2. Patricia M. Dechow & Amy P. Hutton & Jung Hoon Kim & Richard G. Sloan, 2012. "Detecting Earnings Management: A New Approach," Journal of Accounting Research, Wiley Blackwell, vol. 50(2), pages 275-334, May.
    3. Burgstahler, David & Dichev, Ilia, 1997. "Earnings management to avoid earnings decreases and losses," Journal of Accounting and Economics, Elsevier, vol. 24(1), pages 99-126, December.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Vasyl Tsaruk, 2018. "Corporate Governance Principles and Accounting: Ways of Harmonization," Oblik i finansi, Institute of Accounting and Finance, issue 4, pages 77-83, December.

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    More about this item

    Keywords

    Earnings management; accruals; quality; diversification; corporate governance;
    All these keywords.

    JEL classification:

    • G39 - Financial Economics - - Corporate Finance and Governance - - - Other

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