Manuscript Title:

EARNINGS MANAGEMENT: AN EVIDENCE FROM INDIAN AUTOMOBILE SECTOR

Author:

Ankit Singhal, Himanshu Jain, Akhilesh Kumar Mishra, Vijay Athavale

DOI Number:

DOI:10.17605/OSF.IO/JRM7E

Published : 2021-04-10

About the author(s)

1. Ankit Singhal - School of Management & Entrepreneurship, Shiv Nadar University, Greater Noida, Uttar Pradesh, India.
2. Himanshu Jain - Department of Management Studies, Panipat Institute of Engineering & Technology, Panipat, Haryana, India.
3. Akhilesh Kumar Mishra - Department of Management Studies, Panipat Institute of Engineering & Technology, Panipat, Haryana, India.
4. Vijay Athavale - Department of Computer Science & Engineering, Panipat Institute of Engineering & Technology, Panipat, Haryana, India.

Full Text : PDF

Abstract

Using a sample of Indian automobile companies from 2014 to 2019, we find strong evidence for earnings management. This is particularly true for firms affiliated with business groups that also receive financial assistance from their member firms. We base our analysis on the Beneish M. Model, a standard model that exists in the earning management literature to detect manipulation. Our study provides serious policy implications to curb earning management practices, thereby helps investors to ascertain the true market value of the firm.


Keywords

Automobile Industry, Beneish M-Score Model, Earnings Manipulations detection, Financial Statements