The central point of this examination is to research the effect of corporate governance on earning management practices in India. Its results, if proved significant, can thereon be applied to curb earnings management. We utilized random-effect point estimates on 1613 non-Finance organizations working in the Indian subcontinent. The data pans from 2004 till 2018. Corporate governance has been evaluated on the basis of four of its divergent practices (board size, CEO-chair duality, managerial ownership, and audit committee independence) while discretionary accruals have been utilized as an intermediary for estimating malpractices in the income. This has been accomplished by employing the modified Jones model (Dechow et al., 1995) to obtain the results. The empirical findings are in accordance with the concept of corporate governance. CEOchair duality is significantly connected with practices of earnings management and is thus, noteworthy. However, one of the corporate administration factors, board size, is found irrelevantly identified with earnings manipulation. The examination enhances the current writings on the subject matter; that there is a negative relationship with the two major areas of the study, namely, corporate governance and earnings manipulation. The investigation accords explicitly by confirming that in emerging nations, corporate administration must have a negative impact on the issue of earnings manipulation. The importance of the research is enhanced by the prevalence of the, so called, "interest war" among the minority and controlling shareholder(s) than between the executives and proprietors, in developing countries like India. Contribution/ Originality:This study contributes in the existing literature by expanding the research to a large sample over a period of 14 years. Further, the research is based on recent data and is focused on Indian economy, which is uniquely characterized largely by family controlled businesses and interest war.
The study of corporate governance is gaining momentum as its compliance has been made mandatory and the number of corporate governance issues is on the rise. Global scandals in Enron, WorldCom, and so forth. along with the rising number of domestic cases of misgovernance such as Satyam, Tata v/s Mistry have further stimulated the interest of policy makers, investors, academicians and other stakeholders in India. A number of studies have investigated the relationship between corporate governance and performance but the results remain inconclusive. We examine the relationship in the Indian context on a sample of 2,552 non-financial firms. The firm performance is measured by ROA and Tobin's Q and corporate governance characteristics are measured by the strength of the board, shareholding by executives, independence of the members of the audit committee and dual positions held by CEO. The results of the panel data analysis on 15,671 firm year (2010-2019) shows that the CG factors, namely, audit committee independence, board size and CEO duality do not impact firm performance whereas managerial ownership revealed positive impact on firm performance (ROA). Audit committee independence and CEO duality have no impact whereas board size and managerial ownership revealed positive impact on firm performance (Tobin's Q).
Integration or segmentation of markets determines whether substantial advantages in risk reduction can be attained through portfolio diversification in foreign securities. In an integrated market, investors face risk from country-specific factors and factors, which are common to all countries, but price only the later, as country-specific risk is diversifiable. The aim of this study is two-fold, firstly, investigating the superiority of the Fama-French three-factor model over Capital Asset Pricing Model (CAPM) and later using the superior model to test for integration of Indian and US equity markets (a proxy for global markets). Based on a sample of Bombay Stock Exchange 500 non-financial companies for the period 2003–2019, the data suggest the superiority of Fama-French three-factor model over CAPM. Using the Non-Linear Seemingly Unrelated Regression technique, the first half of the sample period (2003–2010) shows evidence of market segmentation; however, the second sub-period (2011–2019) shows weak signs of market integration, which is supported by the Johansen test of cointegration, suggesting that Indian market is gradually getting integrated with global markets.
Gender sensitivity aids as a probable solution for facilitating female talent in an organization. This study measures gender sensitivity by applying multilevel modeling in hotel industry with a twofold objective: to identify explanatory predictors at the organizational level as well as to check whether insensitivity is the result of inherent bias in the industry at the individual level. Primary data were obtained from 355 employees and 10 HR (human resource) managers of both five and four-star hotels of Udaipur, India. Since 19.132% of the variation in gender sensitivity lies among the hotels and variation at the individual level is 8.731%, the data is analyzed through hierarchical linear modeling. Perceived gender bias (PGB) and human resource policies and practices (HRP) were found to be both significant and enough to explain variation in gender sensitivity among hotels. Also, an inverse and significant relationship between perceived gender bias (PGB) and perceived gender sensitivity (PGS) and a positive and significant relationship between PGS and HRP were identified.
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