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Home > Long Run Integration of Earning Management in Capital Structure and Fama French Model: Evidence from South Asian Countries

Long Run Integration of Earning Management in Capital Structure and Fama French Model: Evidence from South Asian Countries

Thesis Info

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Author

Shoaib, Adnan

Program

PhD

Institute

Bahria University

City

Islamabad

Province

Islamabad

Country

Pakistan

Thesis Completing Year

2017

Thesis Completion Status

Completed

Subject

Management Sciences

Language

English

Link

http://prr.hec.gov.pk/jspui/bitstream/123456789/13737/1/Adnan_Shoaib_Management_Sciences_HSR_2017_Bahria_20.08.2018.pdf

Added

2021-02-17 19:49:13

Modified

2024-03-24 20:25:49

ARI ID

1676724845928

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The primary objective of this study is to evaluate the role of earning measuring management and quality measures in explaining the earning informativeness that affects market value of the firm through involving volatility factors in coefficient of earnings. Moreover, this study assimilates the effect of earning management on capital structure performance and discourses the behavior of capital structure and performance relationship in the presence of earning management. Furthermore, this study also extends the three factor model, with the purpose of capturing irrational behavior of stock returns by incorporating earning management effect (information risk factor) and gearing effect (growth or liquidity factor). For analysis, the data of five countries are employed in the sample that are Pakistan, India, China, Bangladesh, and Sri Lanka. The data of cumulative 802 companies are taken in sample for estimating market valuation through accruals and quality measures and for studying the impact of earning management on capital structure. However, for capturing irrational behavior massive sample of monthly data of cumulatively 1428 companies are employed. The sample period is from 2001 to 2013 in case Pakistan, India, and China, but in case of Sri Lanka and Bangladesh, the sample period is from 2008 to 2012. Based on Panel data models, the results reveal that opportunistic earning management is prevalent in all countries except Bangladesh. The opportunistic earning management has inverse effect on earning informativeness. Whereas, efficient earning management has positive effect on earning informativeness. China also depicts opportunistic behavior, which is motivated by the ROE sustainability rules of Chinese securities Regulatory Committee (CSRC). Moreover, in case of China, Pakistan, Bangladesh and Sri Lanka, high leverage brings earning management in order to reduce debt covenant violation whereas vice versa is true for India, the opportunistic earning management conveys the adverse effect on capital structure performance of the firm, as it subsidized the impact of capital structure on firm performance and also increases the earning risk. Indian firms are more exposed to earning management that adversely affect the capital structure performance and leverage decisions. The size is negatively associated with performance, which is due to the fact that firms forcefully increase size either for strategic reason, institutional reason or principle agent conflict that induces size increase and also brings asset inefficiency due to underutilization of assets. The study showed that growth or liquidity factor and information risk factor are the priced risk factors and capture the variation in stock returns. It is also identified that Chinese firms are illiquid that leads to negative WML factor, which conveys that looser stock have higher returns. This study has implication towards accounting standards, debt covenants, managers and investors, which can restrict the adverse earning management practices. Furthermore, investors can capture the information risk and can engage in more informed trading in the stock markets.
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امجدؔ حیدرآبادی

امجدؔ حیدرآبادی
افسوس ہے کہ پچھلے دنوں حضرت امجد حیدرآبادی کا۸۳ سال کی عمر میں انتقال ہوگیا۔مرحوم بڑے قادر الکلام اورنغز گوشاعر تھے۔نثراورنظم دونوں میں یدِ طولیٰ رکھتے تھے۔لیکن رباعی گوئی اُن کا خاص فن تھا۔اس میدان میں وہ اپنا کوئی حریف نہیں رکھتے تھے،اس اعتبار سے و ہ درحقیقت اردو زبان کے سرمد تھے۔ چنانچہ مولانا گرامی نے بجاطورپر کہاتھا:
امجد بہ رباعی ست فردا مجد
کلکِ امجد کلیدِ گنجِ سَرمد
گفتم کہ بودجوابِ سرمدؔ امروز
روحِ سَرمد بگفت امجد امجد
 بلند پایہ شاعرادیب اورمصنف ہونے کے علاوہ بڑے صاحب ِدل،صاحبِ معرفت،خوددار،غیور اورپابندِ وضع بزرگ تھے۔زندگی بالکل درویشانہ ا ورقلندانہ تھی۔عسرت وافلاس سے ہمیشہ سابقہ رہا مگراربابِ ثروت ووجاہت کے ساتھ نیازمندی کاتعلق رکھ کراپنے فن اورکمال کی توہین کبھی گوارا نہیں کی۔سیلاب رودِموسی کے واقعہ کے بعد جس میں اُن کے دیکھتے ہی دیکھتے بوڑھی ماں اورجوان بیوی بہہ گئیں اورغرق ہوگئیں تھیں وہ سوزوگداز مجسم اورپیکر عبرت ہوکررہ گئے تھے لیکن کیا مجال کہ تسلیم و رضا کی پیشانی پرکوئی بل بھی پڑا۔مولانا سید مناظر احسن گیلانی اورمرحوم میں بڑے مخلصانہ تعلقات تھے اوردونوں ایک دوسرے کی دل سے قدرومنزلت کرتے تھے۔مرحوم سے راقم الحروف کی پہلی ملاقات ۱۹۴۴ء میں حیدرآباد میں مولانا کے مکان پرہی ہوئی تھی۔یہ ملاقات اگرچہ سرسری تھی، لیکن مرحوم کے حافظہ کاکمال یہ تھا کہ ۱۹۵۸ء میں جب سفرحیدرآباد کے سلسلہ میں موصوف کے مکان پرحاضر ہوا تو اگرچہ ضعیفی اورحافظہ اورمسلسل علالت کی وجہ سے بہت کمزور ہورہے تھے اوربینائی بھی بہت کمزور ہوچکی تھی، مگر باایں ہمہ میری آواز سنتے ہی فوراً زنانخانہ سے مردانہ میں آگئے۔ بڑی شفقت ومحبت سے خاطر تواضع کی، دیر تک باتیں کرتے اوربرہان و ندوۃ المصنفین کی خدمات کاتذکرہ کرتے رہے۔چلنے لگا تواپنی تمام کتابوں کاسیٹ عطافرمایا،میں نے اُن کاہدیہ پیش کیا تومیرے سخت اصرار کے بعد بادل نخواستہ قبول فرمایا۔...

الاختلاف في التفسيرحقيقته وأنواعه دراسة تحليلية نظرية

Allah revealed the Noble Qur'an To His prophet (PBUH) and that is an evidence for the truthfulness of his prophet hood. Allah make a special sequence in this book and he taken the responsibility of its protection, there are scholar whom devoted their lives for the understanding and explanation of the meaning of this Noble book, So All of these Scholar’s explained the verses of Qur'an by their vision, level of understanding, thinking and keeping in view the demands of the place and time. That is the reason that we are finding their different views in the interpretation of Qur'an. In this Article discussed these types of differences and its kinds that we may understand the reality of these various opinions in Tafseer. That these are just the differences in words or there is contradiction in real in their views?

Soil Adsorption of Pesticides Used on Vegetables in Southern Sindh

The fate of nine different pesticides (endosulfan, deltamethrin, imidacloprid, thiodicarb, triazophos, pyridaben, emamectin benzoate, fipronil and diafenthiuron) selected from individual classes was examined in three different soils at laboratory and field conditions. The findings suggested the various key mechanisms such as adsorption, leaching, dissipation and degradation which were responsible for interaction of pesticide with soil. Among these adsorption was one of the most important processes affecting the leaching of pesticides through soil because it controls the amount of pesticide available for transport. The evaluation of kinetic data was performed through pseudo first and second order models. It was found that kinetic adsorption of all pesticides except Endosulfan on soil followed pseudo first order with rate constant value ranged in 0.096-0.214/h, equilibrium concentration was found 38.177-77.678 mg/g and R2 value in a range of 0.988-0.997. Only kinetic adsorption of Endosulfan has followed pseudo second order kinetic model. To monitor the pseudo equilibrium achieved for selected pesticides the curve was plotted between pesticide residues adsorbed and time. The kinetic adsorption had shown two clear regions, initially a very rapid adsorption followed by a slow adsorption region. The rapid adsorption was surface phenomenon because the vacant sites in the soil particles were filled up rapidly in the preliminary region followed by a slow adsorption due to migration and diffusion of pesticide molecules in soil. The pseudo equilibrium time observed for pyridaben was 3 h, diafenthiuron 3.5 h, endosulfan, fipronil and deltamethrin 4 h each, emamectin benzoate 5 h, imidacloprid and triazophos 6 h, thiodicarb 10h. Equilibrium adsorption of selected nine pesticides was monitored with Langmuir and Freundlich models. It was investigated that all selected pesticides have followed Freundlich isotherm representing the reversible, non-ideal and multilayer adsorption over heterogeneous surface of soil. The Freundlich adsorption capacity (A), intensity (n) and R2 computed for all used pesticides were in a range of 1.053-2.813 mg/g, 0.249-0.892 and 0.996-0.999 respectively. Therefore the value of n obtained from Freundlich model was below 1, indicating chemisorption was taking place between pesticides and soil surface. In addition value of 1/n was greater than one showing co-operative adsorption was taking place with chemisorption mechanism. In laboratory, leaching study was performed in three plastic columns of 30 cm length, each for individual soil type. Known amount of each pesticide was applied to column, after adsorption it was eluted with 500 ml water in five portions. These water portions and soils were analyzed with concerned analytical technique. Generally the concentration of all pesticides was found to be decreased in column soil and water samples. In water samples it was observed as follow: α-Endosulfan 1.028-0.002, β-Endosulfan 1.015-0.003, triazophos 0.734-0.101, imidacloprid 0.481-0.103, thiodicarb 2.814-0.003, diafenthiuron 0.28-0.003, fipronil 0.032-0.002, emamectin benzoate 0.082-0.040, pyridaben 0.004-0.001, deltamethrin 0.073-0.001 ng/µl respectively. The decrease of pesticide residues in column soils were found as, α-Endosulfan 3.621-0.012, β-Endosulfan 2.968-0.012, triazophos 4.782-0.004, imidacloprid 2.905-0.123, thiodicarb 4.739-0.618, diafenthiuron 4.296-0.013, fipronil 4.791-1.107, emamectin benzoate 4.749-1.131, pyridaben 5.314-1.014 and deltamethrin 2.584-0.605 ng/mg. In field the leaching power of pesticides was examined up to 60 cm depth. Total four soil samples were randomly collected from each site, first three samples were taken at interval of 10 cm each and fourth sample was taken from 30-60 cm soil depth. The residue was found to decrease as we go down in soil. The pesticides Endosulfan, imidacloprid, thiodicarb and diafenthiuron were seen to leach 60 cm soil depth, triazophos moved 30 cm soil depth and deltamethrin, pyridaben, emamectin benzoate, fipronil were observed strongly adsorbed within 20 cm soil depth. The dissipation rate investigated for individual pesticide in three different soils was as under: α-Endosulfan 99 % over 60 d with average T1/2 of 8.395 d, β-Endosulfan above 91 % over 140 d with average T1/2 43.659 d, deltamethrin above 91 % over 30 d with average T1/2 16.577 d, imidacloprid above 88.413 % over 120 d with average T1/2 38.002 d, thiodicarb above 94.301 d over 35 d with average T1/2 8.372 d, triazophos above 90% over 30 d with average half-life of 9.059, pyridaben above 90 % over 12 d with average T1/2 3.786 d, emamectin benzoate above 87.035 % over 12 d with average T1/2 4.142 d, fipronil above 90 % over 150 d with average T1/245.755 d, diafenthiuron above 94 % over 15 d with average T1/2 4.343 d. From dissipation study it was inferred that rate was variable in each soil due to climatic changes, soil nature and soil-pesticide interactions. The % recoveries obtained for each of pesticide in soil were: α-Endosulfan 93.407-98.559, β-Endosulfan 89.216-97.279, deltamethrin 94.775-96.935, imidacloprid 88.698-95.694, thiodicarb 86.098-95.762, triazophos 92.093-98.516, pyridaben 90.885-95.116, emamectin benzoate 88.973-96.158, fipronil 95.769-99.030 and diafenthiuron 88.432-94.416 %. By applying GUS model triazophos, pyridaben, emamectin benzoate, fipronil, α-Endosulfan and deltamethrin were classified as non-leacher pesticides, while diafenthiuron, thiodicarb, β-Endosulfan and imidacloprid were categorized as leacher pesticides class.