Vol. 2, Issue 10 (2015)
Impact of Earnings Management on Dividend Policy of Indian Companies
Author(s): Manisha Khanna, Monika Khanna
Abstract: The paper examines the impact of earnings management on dividend pay-out policy of Indian companies listed at the Bombay Stock Exchange. The study uses discretionary accruals to measure the extent of earnings management. Modified Cross Sectional Jones Model (1995) has been used to determine the earnings management. Dividend policy is being measured by dividend pay-outs. Results suggest that dividend payouts of sample companies are influenced by Return on Equity and self-financing ratio. Earnings management has no significant impact on dividend policy of companies. The study period is 2008 to 2013 and the sample size is 79.