Decoding Gimmicks of Financial Shenanigans in Telecom Sector in India

Sandeep Goel ()
Additional contact information
Sandeep Goel: Management Development Institute, Gurgaon, India

Journal of Accounting and Management Information Systems, 2013, vol. 12, issue 1, 118-131

Abstract: Major corporate financial shenanigans get away in the name of creative accounting. But, they need to be studied for lessons learned and strategies to avoid or reduce the incidence of such frauds in the future. It is essential for shareholders, particularly the common man who does not have any access to the company except reported financial numbers. This paper aims to decode the level of financial shenanigans practices in corporate enterprises in telecom sector in India. The reason being is that telecom sector is a part of service industry and is dependent on tariff policies; therefore it is the most volatile sector where financial shenanigans are probable on a large scale. We have tried to contribute by detecting these shenanigans in totality not in isolation, on five parameters: quality of earnings, quality of revenue, volatility of income, discretionary accruals, and manipulation score. The results indicate the visibility of financial shenanigans in the companies under study. It is therefore expected that the study improves investors’ belief of a company’s performance, as reflected in their financial numbers.

Keywords: Financial shenanigans; quality of earnings; quality of revenue; discretionary accruals and telecom sector (search for similar items in EconPapers)
JEL-codes: M49 (search for similar items in EconPapers)
Date: 2013
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
http://online-cig.ase.ro/RePEc/ami/articles/12_1_7.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ami:journl:v:12:y:2013:i:1:p:118-131

Access Statistics for this article

More articles in Journal of Accounting and Management Information Systems from Faculty of Accounting and Management Information Systems, The Bucharest University of Economic Studies
Bibliographic data for series maintained by Cristina Tartavulea ().