Published Paper Details:

This paper investigates the relationship between interim financial reporting and earnings management (EM) in Indian firms, analysing the regulatory framework, accounting standards, and the implications of such practices on financial transparency. Using data from listed companies, it examines how interim reporting influences earnings management, particularly focusing on periods of quarterly disclosures mandated by SEBI and ICAI. The study highlights that despite regulatory efforts, Indian firms exhibit significant earnings management practices during interim periods, with a higher incidence compared to annual reports. This research identifies key factors contributing to EM, such as firm size, industry type, market expectations, and governance structures, which influence the extent of earnings manipulation. Additionally, the paper discusses the effectiveness of the regulatory and accounting frameworks, particularly the transition from Accounting Standard (AS) 25 to Ind AS 34, which aligns with international standards. The findings indicate that the limited review process and less stringent scrutiny of interim reports contribute to the persistence of earnings management. The paper concludes by offering recommendations for improving the regulatory framework, enhancing audit quality, and strengthening governance mechanisms to curb earnings manipulation and ensure the reliability of interim financial reporting in India.