Published Online:October 2025
Product Name:The IUP Journal of Accounting Research & Audit Practices
Product Type:Article
Product Code:IJARAP061025
DOI:10.71329/IUPJARAP/2025.24.4.113-138
Author Name:Parul Rani and Karamjeet Kaur
Availability:YES
Subject/Domain:Finance
Download Format:PDF
Pages:113-138
The paper delves into the firm-specific determinants of earnings management for Indian corporates. It focuses on firms listed on the Bombay Stock Exchange (BSE) 200, covering 10 years from 2012 to 2021. The technique applied to explore the determinants of earnings management is panel regression. The findings reveal that firm’s profitability, asset tangibility and size have a positive influence on earnings management practices, whereas earnings management is adversely impacted by leverage, debt maturity structure and cash flow from operations. Moreover, growth, firm’s age, liquidity and effective tax rate do not show any association with earnings management. The study employs an extensive set of firm-specific variables to provide novel insights into the key factors important to investors, policymakers and regulatory bodies, enabling a better evaluation and analysis of organizations’ financial position and reporting.
Financial statements showcase the true picture of a company’s affairs. However, with the increasing number of accounting scandals globally, this notion is under jeopardy, as the authenticity of the financial information of the firm is a serious concern (Healy & Wahlen, 1999).