Earnings Management Behaviour of Telecom India: A Review of MTNL and Bharti Airtel Ltd
Earnings behaviour of the management is the key concern for every shareholder. This has assumed importance on account of increasing number of corporate frauds at the global level. It is identified by the level of accruals exercised by the management as it forms the basis of earnings management. Telecom sector being a part of service sector is more vulnerable to this discretionary earnings behaviour. Therefore, the present paper attempts to highlight earnings management behavior in Indian telecom sector on comparative basis of MTNL and Bharti Airtel. MTNL is a leading public sector company, whereas Airtel is a leading private sector company. They have been chosen to appreciate better the different earningsâ€™ behavior in two diverse leading enterprises. Earnings management has been analyzed using five industry practices, viz. (i) quality of earnings, (ii) quality of revenue, (iii) volatility of income, (iv) discretionary accruals, and (v) manipulation score. It is hoped that the findings would make investorsâ€™ more aware about earnings management and help them analyze the reported numbers better.
Volume (Year): (2014)
Issue (Month): 1 (March)
|Contact details of provider:|| Postal: |
Web page: http://www.iaf.kiev.ua/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Skinner, Douglas J., 1993. "The investment opportunity set and accounting procedure choice : Preliminary evidence," Journal of Accounting and Economics, Elsevier, vol. 16(4), pages 407-445, October.
- 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.
When requesting a correction, please mention this item's handle: RePEc:iaf:journl:y:2014:i:1:p:71-77. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Serhiy Ostapchuk)
If references are entirely missing, you can add them using this form.