Impact of Earnings Management on Dividend Policy: Empirical Evidence from India

Srikanth, P and Prasad, Durga (2015) Impact of Earnings Management on Dividend Policy: Empirical Evidence from India. NITTE Management Review, 9 (1). pp. 14-22.

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Abstract

In this paper we attempt to find whether earnings management affects dividend policy. We use discretionary accruals as a measure of earnings management. We first calculate total earnings by using the Sloan’s model (1996) and non-discretionary accruals using Jones model27. We then arrive at the discretionary accruals by taking the difference between the above two. We take the total dividend pay-outof our sample firms and then perform regression to find whether discretionary accruals are influencing the dividend policy. Our findings reveal that the discretionary accruals is an influencing factor in the dividend pay-out. We also find that, firm ownership, free cash flow and beta are also influencing variables.

Item Type:	Article
Uncontrolled Keywords:	Earnings Management; Managed Earnings; Dividend Policy; Free Cash Flow; Firm Ownership;Beta
Subjects:	?? Finance ??
Divisions:	Finance and Strategy
Depositing User:	Mr. Ramesh Kamath
Date Deposited:	11 Sep 2018 16:51
Last Modified:	14 Feb 2019 08:54
URI:	http://tapmi.informaticsglobal.com/id/eprint/65

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