Title: Effect of earnings smoothness on Indian IT industry

Authors: Shikhil Munjal; Gurcharan Singh

Addresses: School of Management Studies, Punjabi University, Patiala (Punjab) 147001, India ' School of Management Studies, Punjabi University, Patiala (Punjab) 147001, India

Abstract: The aim of this study is to empirically examine the impact of earnings smoothness on the IT industry of India. India is one of the promising markets in the world and an examination is needed to justify the institutional and accounting structures of the country. Earnings quality can be measured by different indicators like accrual quality, smoothness, persistence and predictability, etc. To measure the performance of National Stock Exchange listed IT companies of India, the study used earnings smoothness as an indicator of earnings quality. For firms' operational performance, return on assets (ROAs), and for market performance, Tobin's Q is considered. The results found that earnings smoothness does not affect the company's operational performance, i.e., ROA and market performance, i.e., Tobin's Q significantly. These results are consistent with the study conducted by Yandiarti (2013) and Retnowati (2011) and are contrary to the study done by Mahmod et al. (2009).

Keywords: earnings quality; earnings smoothness; National Stock Exchange; return on asset; Tobin's Q; operational performance; market performance.

DOI: 10.1504/JGBA.2025.150980

Journal for Global Business Advancement, 2025 Vol.17 No.3, pp.330 - 350

Received: 06 May 2019
Accepted: 31 May 2019
Published online: 07 Jan 2026 *

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