Impact of Firm Size on Earnings Management: A Study of Textile Sector of Pakistan

European Journal of Business and Management, Vol. 7, No. 28, 2015

10 Pages Posted: 8 Dec 2015

See all articles by Usman Ali

Usman Ali

National University of Modern Languages (NUML)

Muhammad Noor

National University of Modern Languages (NUML)

Muhammad Kashif Khurshid

National University of Modern Languages (NUML)

Akhtar Mahmood

National University of Modern Languages (NUML)

Date Written: December 2, 2015

Abstract

The study was conducted to evaluate the impact of firm size on earnings management for the textile sector of Pakistan. For this purpose annual ten years data was obtained from 2004 to 2013 for fifty selected firms from the textile sector of Pakistan. Natural logarithm of total assets was used as the proxy of firm size. On the other hand earning management was the dependent variable of this study. Earnings management was measured through discretionary accruals by using modified Jones model. Descriptive statistics, correlation and panel data analysis was used for capturing the impact of firm size on earnings management. The statistical results of this study revealed that there is positive and significant impact of firm size on earnings management.

Suggested Citation

Ali, Usman and Noor, Muhammad and Khurshid, Muhammad Kashif and Mahmood, Akhtar, Impact of Firm Size on Earnings Management: A Study of Textile Sector of Pakistan (December 2, 2015). European Journal of Business and Management, Vol. 7, No. 28, 2015, Available at SSRN: https://ssrn.com/abstract=2698317 or http://dx.doi.org/10.2139/ssrn.2698317

Usman Ali

National University of Modern Languages (NUML)

NUML H-9
Islamabad, Capital City Islamabad 44000
Pakistan

Muhammad Noor

National University of Modern Languages (NUML)

NUML H-9
Islamabad, Capital City Islamabad 44000
Pakistan

Muhammad Kashif Khurshid (Contact Author)

National University of Modern Languages (NUML) ( email )

NUML H-9
Islamabad, Capital City Islamabad 44000
Pakistan

Akhtar Mahmood

National University of Modern Languages (NUML)

NUML H-9
Islamabad, Capital City Islamabad 44000
Pakistan

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