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Durga Prasad Samontaray

Associate Professor

Associate Professor, Department of Finance

كلية إدارة الأعمال
College of Business Administration, Building 67, Second Floor, Office No. S36
المنشورات
مقال فى مجلة
2021

Real Earnings Management and Persistence of Firm Value: Evidence from India

Abstract
The present study aims to examine the impact of real earnings management on the future value of the firm and its persistence. The study also tests suspect firm effects on the relationship between real earnings management and the future value of the firm. The sample of the present study consists of all listed non-financial firms from the year 2011 to 2018. Real earnings management has been measured in three alternative ways viz., abnormal operating cash flows, abnormal discretionary spending, and abnormal production cost. Tobin's Q is used as a measure of firm value. The interaction term of real earnings management and Tobin's Q is used to test firm value persistence. The results of the analysis disclose that out of three measures of real earnings management, abnormal reduction in discretionary spending only has a significant negative impact on the persistence of firm value. Moreover, the suspect firm analysis reveals that when the underlying motive of real earnings management is to meet zero earnings, both abnormal increases in operating cash flows and abnormal reduction in discretionary spending have a significant negative impact on firm value persistence.

Keywords
Real Earnings Management; Suspect Firm Effect; Firm Value; Opportunistic Earnings Management; Signalling Earnings Management

نوع عمل المنشور
Research Article
رقم المجلد
8
رقم الانشاء
12
الصفحات
223-336
مزيد من المنشورات
publications

As managers face a flood of data, it is very important that they effectively analyze and interpret the available data to make decisions. Plotting data will help them in their analysis and…

بواسطة Kaushik Bhattacharjee, Durga Prasad Samontaray
2024
تم النشر فى:
IVEY
publications

Abstract: The aim of the study to find if there is an impact caused by corporate governance
(CG) on the firm performance (FP) using ROA as a measure. The study covered
the listed 9…

بواسطة Atul Bansal, Durga Prasad Samontaray, Rahul Kumar
2023
publications

Underpricing of initial public offerings (IPOs) is a common phenomenon that widely studied over many periods and a broad range of countries. This paper examines the extent of underpricing of IPOs…

بواسطة Durga Prasad Samontaray, Abdullah Saud Al Zuwidi
2023
تم النشر فى:
Corporate Ownership and Control (VIRTUS INTERPRESS)