Implications of Earnings Management for Implementation of Sharia Based Financial System

Interdisciplinary Journal of Contemporary Research In Business, May 2010

17 Pages Posted: 17 Nov 2009 Last revised: 7 Nov 2010

See all articles by Muhammad Hanif

Muhammad Hanif

National University of Computer and Emerging Sciences (NUCES or FAST-NU) - FAST School of Business

Date Written: November 16, 2009

Abstract

This paper documents the issues of earnings manipulation and their likely impact on sharia based financial system. Methodology includes thorough literature review, analogy and basic document interpretation for conclusion. Findings suggest earnings management is likely a cause of lesser popularity of sharia based financial system. Through regulation, capacity building of auditing professionals, compensating management through stock ownership, creating an environment of job security for managers and financially literate board of directors’ earnings management can be minimized which will ultimately help in popularity and implementation of sharia based financial system.

Keywords: Sharia Based Financial System, Earnings Management, Pakistan, Islamic Finance

JEL Classification: R11, G15, G21

Suggested Citation

Hanif, Muhammad, Implications of Earnings Management for Implementation of Sharia Based Financial System (November 16, 2009). Interdisciplinary Journal of Contemporary Research In Business, May 2010. Available at SSRN: https://ssrn.com/abstract=1507022

Muhammad Hanif (Contact Author)

National University of Computer and Emerging Sciences (NUCES or FAST-NU) - FAST School of Business ( email )

A.K. Brohi Road
Sector H/11-4
Islamabad, 44000
Pakistan
+92 (051) 111 128 128 (Phone)

HOME PAGE: http://https://scholar.google.ae/citations?user=Q4gINjEAAAAJ&hl=en

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