Title: The impact of earnings management on future dividend payout of Indian manufacturing firms

Authors: Amarjit Gill; Nahum Biger; Harvinder S. Mand

Addresses: Edwards School of Business, The University of Saskatchewan, 25 Campus Drive, Saskatoon, SK, S7N 5A7, Canada ' School of Business, Carmel Academic Center, Haifa, 33031, Israel ' Sikh National College, Banga District Sahid Bhagat Singh Nagar, Pin Code: 144505, East Punjab, India

Abstract: The study investigates the relationship between earnings management and subsequent dividend payout of Indian manufacturing firms. A sample of 228 firms was selected from top 500 companies listed on the Bombay Stock Exchange (BSE) for a period of four years (from 2008-2011). The findings of this study indicate that earnings management negatively impacts future dividend payout in the Indian manufacturing industry. This study contributes to the literature on the factors that impact dividend payout, and in particular on the association between several features of earnings management and dividend payout. The findings may be useful for financial managers, shareholders, stock investors, financial management consultants, and other stakeholders.

Keywords: earnings management; future dividend payouts; India; future dividends; Indian manufacturing industry.

DOI: 10.1504/IJBG.2014.062840

International Journal of Business and Globalisation, 2014 Vol.12 No.4, pp.369 - 382

Published online: 22 Jun 2014 *

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