Oct '19


The IUP Journal of Accounting Research and Audit Practices.

ISSN: 0972-690X

A peer reviewed journal indexed on Cabells Directory, and also distributed by EBSCO and Proquest Database

It is a quarterly journal that offers papers on Financial accounting, Management accounting, Accounting standards, Taxation, IT-accounting interface; R&D reporting biases and their consequences; Corporate disclosures and Standards of reporting reflecting better governance, Environmental accounting and reporting; Auditing research, Internal and external audits, Ethics in reporting, etc.

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Focus Areas
  • Financial Accounting
  • Management Accounting
  • Forensic Accounting
  • Accounting Standards
  • Taxation
  • IT Accounting Interfacing
  • Auditing
  • Corporate Disclosures
  • Internal Audit
  • Audit of Financial Statements
  • Audit Education
  • Cost Audit
  • Tax Audit
  • Audit Standards and Assurance
  • Social Audit
  • Environmental Audit
  • Quality Audit
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Article   Price (₹) Buy
Do Corporate Governance Characteristics Constrain Earnings Management? – The Role of Board, Audit Committee and Ownership Structure in Indian Corporate Sector
50
Determinants of Profitability of Capital-Intensive Firms in the Indian Capital Market: A Static and Dynamic Panel Approach
50
Analyzing the Financial Soundness of Bank Dhofar: A CAMEL Approach
50
       
Contents: (Oct 2019)

Do Corporate Governance Characteristics Constrain Earnings Management? – The Role of Board, Audit Committee and Ownership Structure in Indian Corporate Sector
Deepa Mangala and Isha

Corporate governance ensures adoption of fair accounting practices and transparency in financial reporting system. It defines the accountability of managers and acts as a deterrent to earnings management. The present paper examines the relationship of corporate governance characteristics (board, audit committee and ownership structure) with earnings management in India. The study examines earnings management practices of BSE 500 index companies for five financial years from 2012-13 to 2016-17. Discretionary accruals are used as a proxy for earnings management, calculated with the help of cross-sectional modified Jones model by Dechow et al. (1995). The results of panel data regression suggest that attendance of board meetings by independent directors and presence of women directors on board significantly reduce earnings management. Concentrated promoters’ shareholding positively and significantly influences earnings management. The paper further strives to investigate the influence of independence of audit committee on earnings management with firm’s profitability as a moderating variable. The results reveal that audit committee independence is more effective in constraining earnings management in firms with high profitability than their less profitable counterparts. The findings of the study give useful insight for regulators, policymakers and company boards in taking appropriate measures to increase the quality of financial reports.


© 2019 IUP. All Rights Reserved.

Article Price : Rs.50

Determinants of Profitability of Capital-Intensive Firms in the Indian Capital Market: A Static and Dynamic Panel Approach
Ravi Vaidya and Pooja Patel

Capital structure of a firm is a crucial determinant of its financial health and ability to grow and generate healthy returns for all its stakeholders. Ample research has been undertaken to identify the determinants of capital structure of a firm. The present study, using annual data of 214 listed firms from the automobile, cement and steel industry in the Indian capital market for the period 2011-2018, makes an attempt to explore the relationship of the capital structure of these asset-heavy businesses with their profitability performances. The study employs a balanced panel-regression approach: Fixed Effect Model (FEM), Random Effect Model (REM), and Generalized Method of Moment (GMM). The study also implements panel unit root tests to find the stationarity of data. The considered variables of all the three models under pooled regression explain the profitability in terms of performance of companies. All the three relationships depict heterogeneity in time and homogeneity in cross-section. Hence, it is a one-way variable intercept model estimated using FEM by deploying an OLS procedure. The leverage has a negative impact on profitability. However, cash flow, net block and ratio of total liabilities to net block affect profitability positively. The results of Hausman tests for all the three relationships reject the null hypothesis which states that REM is inappropriate; hence, the significance of FEM rather than REM is validated. The OLS model under fixed effect with time is considered to be the preferred model as compared to GMM estimation as the J-statistic reveals some of the misspecification by independent variables. Hence, the dynamic specifications of all the three models are apt to prove invalid. This study attempts to broaden the discussion on the effect of crucial financial variables on the profitability performance.


© 2019 IUP. All Rights Reserved.

Article Price : Rs.50

Analyzing the Financial Soundness of Bank Dhofar: A CAMEL Approach
Shariq Mohammed, Nadia Sha and Jayda Said Mohammed Al Aamri

The banking system is the backbone of any country. The present paper is based on CAMEL rating which was developed in the US in the year 1970 to classify the overall banking conditions, and now it is implemented by most of the banking supervisory regulators. The CAMEL rating studies the Capital Adequacy, Asset Quality, Management Quality, Earnings Ability, and Liquidity in terms of soundness. This paper is a case study of Bank Dhofar in the Sultanate of Oman. The CAMEL analysis has been used to analyze the data from 2010 to 2017. The data was collected from the Muscat Securities Market. It can be concluded that the bank’s capital adequacy requires some improvement. The bank must also increase its intake of government security. Further, Net NPA is showing a decreasing trend, therefore this is a good indication for the banks.


© 2019 IUP. All Rights Reserved.

Article Price : Rs.50

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