Mamta Dhanda

Bio: Mamta Dhanda is an academic researcher from Guru Jambheshwar University of Science and Technology. The author has contributed to research in topics: Earnings management & Initial public offering. The author has an hindex of 1, co-authored 2 publications receiving 3 citations.

Earnings Management and Performance of IPO Firms: Evidence from India:

Abstract: Disclosure through corporate annual reports is intended to enhance transparency and reduce information asymmetry during public issues. Ritter (1991) revealed that there is something fishy i...

Earnings Management: Conceptual Framework and Research Developments

Abstract: Financial reports are prepared to ensure timely availability of reliable information regarding companies’ state of affairs to its users. But when financial statements fail to meet the information expectations of the stakeholders due to lack of qualitative characteristics (ICAI, 2000) like understandability, relevance, reliability, comparability and faithful representation, it raises a question mark on the authenticity of financial reports by corporate houses. The absence of true and fair financial reporting indicates the presence of manipulation in accounting numbers, which can be in the form of fraud, creative accounting and earnings management. Earnings management is modifying the reported accounting figures by using the discretion provided by the accounting standards in such a way that there is no impact on the overall value of the firm. Earnings management is the first step which, if not paid attention to, gets aggravated and becomes fraud. The present paper approaches earnings management keeping research developments and the concepts related to earnings management in view.

Firm Performance, Corporate Social Responsibility and the Impact of Earnings Management during COVID-19: Evidence from MENA Region

Abstract: This study examines the relationship between corporate social responsibility (CSR) and firm performance in the MENA region before and after COVID-19. It also seeks to understand how earnings management moderates that relationship. The final study sample consisted of 661 firm-year observations from 2007 to 2021. This study employed the random effect estimation (RE) method to examine the relationships and used GMM regression for robustness to investigate the results’ consistency. The RE findings demonstrate that environmental, social, and governance (ESG) scores have a favorable impact on return on assets (ROA), even after adjusting for COVID-19. Regarding the moderating effect of EM, the outcome shows that CSR has an insignificant positive impact on financial performance. However, the results demonstrate that ESG has little impact on ROE. Additionally, the findings show a strong positive link between ESG and Tobin’s Q. This study provides policymakers, board directors, and managers with a set of recommendations that are relevant to the context by enabling a better understanding of how managers react to CSR disclosure and the impact of minimizing earnings manipulation on firm performance.

Grouping of Major Changes in Conceptual Framework of Financial Reporting and Analysis of New Challenges

Abstract: This article aims to research the major changes in the Conceptual Framework of Financial Reporting; to find out the new gaps in the current document; to group the changes into categories; to analyze the current difficulties and consequences of these changes for a consistent understanding between standard-setters and practitioners. The Onion research model based on the quantitative data collection with elements of descriptive analysis was considered as important contributions to the research methodology of the Conceptual Framework for Financial Reporting investigation. As a result, a comparative analysis of the financial reporting concepts was made between July 1989, September 2010, and March 2018. The implications of results are two-fold. On the one hand, the revised Conceptual Framework is a more comprehensive set of concepts that enhance the understanding between practitioners and standard-setters. On the other hand, it consists of the new gaps most of them in the ―Updating” category. It is concluded that this innovation complicates the reporting process for practitioners because it requires using of additional judgments. Besides, the investigation shows some IFRS are not justified within only the Conceptual Framework that might be the subject for further research.

Earnings management and accounting performance of new firms listings: evidence from the Vietnamese stock market

Abstract: Abstract The purpose of this article is to investigate the phenomenon of earnings management and its impact on accounting performance at the time of the listing event. The analysis is based on a sample of 189 firms listing their securities on the Ho Chi Minh, Vietnam stock exchange for the period of 2009 to 2017. Four cross–sectional models were adopted for this study to estimate earnings management with two models based on total accruals and two models based on current accruals. The article first provides evidence that Vietnamese firms aggressively manipulate their earnings upward in the year before listing in an attempt to meet listing requirements when adopting current accruals models, but not when earnings management was measured by total discretionary accruals. Additionally, firms exhibit a significant decline in accounting performance (measured by ROE and ROA) for two consecutive years after listing. Consistent with our expectations, earnings management (measured by discretionary current accruals) in the pre-listing year are negatively related to poor accounting performance for two years after listing but not in the listing year. This study also provides an additional robustness check on the results with respect to handling outliers. The findings from this research make a number of contributions to the earnings management literature and are relevant for investors, policymakers, and firms.

The impact of financial performance and firm characteristics on earnings management: Case of Tunisian Companies

Abstract: The purpose of this study is to test the effect of financial performance on earnings management, with the presence of a firm’s specific characteristics, in a non-credible financial information context such as Tunisia. A panel data approach, namely multiple regression analysis, was applied on a sample of 30 firms operating in different sectors and observed over the period 2012–2021. Two estimation methods, the fixed effects and random effects models, are used. To choose the best estimation method, the Breusch-Pagan and Hausman tests were used.The results indicate, on the one hand, the financial performance measured by Tobin’s Q and Marris’ ratio, positively affects earnings management. On the other hand, the variables of firm characteristics, such as financial leverage, asset structure, growth rate and sectoral affiliation, decrease earnings manipulation, and firm size and managers’ ownership have no effect on earnings management. This means that managers of Tunisian firms manipulate their results to improve the level of performance and their financial sate. This manipulation is driven by goals other than those observed in other contexts and related to the financial market. This finding contributes to the literature on the association between several features of earnings management and firm performance, with the effect of firm characteristics.