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http://hdl.handle.net/2080/3922
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DC Field | Value | Language |
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dc.contributor.author | Parida, Mamatanjali | - |
dc.contributor.author | Mahadik, Dushyant A | - |
dc.date.accessioned | 2023-01-18T04:53:57Z | - |
dc.date.available | 2023-01-18T04:53:57Z | - |
dc.date.issued | 2022-12 | - |
dc.identifier.citation | 11th India Finance Conference, IIM calcutta, 19-21 December 2022 | en_US |
dc.identifier.uri | http://hdl.handle.net/2080/3922 | - |
dc.description | Copyright belongs to proceeding publisher | en_US |
dc.description.abstract | In this study, we examine how debt financing in general and bank borrowings in particular affect the earnings quality in Indian firms. We conduct an empirical analysis taking a sample of 626 Indian non-financial firms from 2003 to 2021. Our sample comes from the Food and Agro-based industry, which is divided into four relatively homogenous groups. On each of the groups, we apply an industry-wise cross-sectional version of modified Jones model (Dechow et al. 1995) for estimating the discretionary accruals, a measure for earnings quality. Testing the hypotheses using industry fixed effects, for four sub-sectors, we found that debt financing is positively associated with discretionary accruals (negatively associated with earnings quality). We interpret this as a sign of discretion applied by opportunistic managers of borrowing firms in order to showcase a good financial position for reducing the cost of covenant violation. Further, age and size of the firms are positively related to earnings quality while leverage has a negative impact, along expected lines. | en_US |
dc.subject | earnings quality | en_US |
dc.subject | discretionary accrual | en_US |
dc.subject | debt financing | en_US |
dc.subject | debt covenants | en_US |
dc.subject | agency theory | en_US |
dc.title | Role of Creditors in Monitoring Earnings Quality in India | en_US |
dc.type | Presentation | en_US |
Appears in Collections: | Conference Papers |
Files in This Item:
File | Description | Size | Format | |
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2022_IFC-IIM_MParida_Role.pdf | 878.79 kB | Adobe PDF | View/Open |
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