A Study of Factors Affecting Real Earnings Management

AUTHOR
Aditi Mahajan *

KEYWORDS
Board Size, Earnings Change, Earnings Management, Growth Effect.

ABSTRACT
Earnings Management is purposeful attempt to conceal a company's true performance in order to deceive the stakeholders or to obtain some contractual advantages. When a company feels pressured to manipulate earnings in order to match a predetermined target, it uses earnings management. This research investigates the impact of various financial and governance factors on Real Earnings Management (REM) within non-financial companies listed on the BSE 500. The study focuses on a sample of 197 companies over the period from 2015 to 2022. Specifically, it examines the influence of Debt Equity Ratio, Earnings Change, Board Size, Return on Assets, Liquidity Effect, Growth Effect, and Size Effect on REM practices.