Comparation of Earnings Quality Measures at Industries in the National Stock Exchange of India

Shikhil Munjal; Gurcharan Singh

doi:10.31966/jabminternational.v31i1.886

Shikhil Munjal Punjabi University, Patiala
Gurcharan Singh Punjabi University, Patiala

DOI: https://doi.org/10.31966/jabminternational.v31i1.886

Abstract

Earnings quality has emerged as an important phenomenon for many types of investors looking to invest in stocks. There are different approaches to determine the level of earnings management in academic research on earnings quality. To quantify earnings quality, the present study used the four techniques suggested by Penman (2001), Barton and Simko (2002), Leuz et al. (2003), and Desai et al. (2006). Using a sample of 65 companies from six major industries on the National Stock Exchange over a 12-year period, this study seeks to determine whether there is any consistency among the four measures of earnings quality. The analysis showed that a single approach cannot be used to define an organization as high or low quality. Hence, this study sheds light on the inconsistency of earnings quality measurements and advises firm stakeholders to employ several indicators when making decisions.

JEL Classification: G34; G38; M41

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Author Biography

Gurcharan Singh, Punjabi University, Patiala

Dr. Gurcharan Singh holding the position of professor in School of Management Studies

department, Punjabi University, Patiala (Punjab) India. He was formerly the Head of Department of School of Management studies, Punjabi University, Patiala. He is qualified in diverse areas like M.A

Economics, L.L.B, M.Com., PGDCA, PG diploma in mass communication and Journalism and Doctorate in

Management. He has been in teaching profession for last 24 years. He has published more than 100

research articles in national and international journals and has also published six books.

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