Effect of earnings management and cash holdings on annual report readability: Evidence from top Indian companies

IF 1.7 Q3 MANAGEMENT

IIMB Management Review Pub Date : 2024-12-01 DOI:10.1016/j.iimb.2024.10.004

Sweta Tiwari, Chanchal Chatterjee, Pooja Sengupta

引用次数: 0

Abstract

The present study explores the impact of earnings management on the readability of management discussion and analysis (MDA) section of annual reports of 384 Indian firms for 1,160 firm-years. It also explores the moderating behaviour of cash in explaining the association between earnings management and MDA readability. Using fixed-effect regression, the study finds that firms that manage earnings by meeting or just beating the previous year earnings publish complex MDAs. Moreover, it documents the positive moderating role of cash in explaining this relationship. Multiple robustness tests confirm our findings across different years including the COVID-19 crisis period.

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来源期刊

IIMB Management Review MANAGEMENT-

CiteScore

3.20

自引率

5.90%

发文量

审稿时长

68 days

期刊介绍： IIMB Management Review (IMR) is a quarterly journal brought out by the Indian Institute of Management Bangalore. Addressed to management practitioners, researchers and academics, IMR aims to engage rigorously with practices, concepts and ideas in the field of management, with an emphasis on providing managerial insights, in a reader friendly format. To this end IMR invites manuscripts that provide novel managerial insights in any of the core business functions. The manuscript should be rigorous, that is, the findings should be supported by either empirical data or a well-justified theoretical model, and well written. While these two requirements are necessary for acceptance, they do not guarantee acceptance. The sole criterion for publication is contribution to the extant management literature.Although all manuscripts are welcome, our special emphasis is on papers that focus on emerging economies throughout the world. Such papers may either improve our understanding of markets in such economies through novel analyses or build models by taking into account the special characteristics of such economies to provide guidance to managers.