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Promoters play a very important role in the performance of companies. In India, the average holding of promoters is very large at around 54%. These promoters are either government or private individuals and business houses. India started the privatization process in a big way in the early 1990s and also started disinvesting stakes in major public sector companies, while retaining a minimum of 51% stake in a majority of companies, in effect keeping the control. The paper with an objective to study whether there exists a significant difference in the performance of government promoted firms and private firms and found a significant difference in the performance between them using both independent sample t-test and pooled panel data regression. The paper is based on the data of public listed companies in India over a period of 11 years (2008-2019). [ABSTRACT FROM AUTHOR]

The paper evaluates the effect of Working Capital Management (WCM) on firm profitability of selected textile companies in India. The study is based on secondary data collected by CMIE from the companies’ annual reports for the years 2011-2020. Regression analysis is used on a panel sample of 98 companies from India’s Bombay Stock Exchange. Various financial ratios related to Working Capital (WC) and profitability and panel data techniques like Fixed Effect Model, Random Effect Model and Hausman test, etc. are also used. The results showed that WCM has a significant impact on a firm’s profitability in the textile sector. [ABSTRACT FROM AUTHOR]

Existing literature shows that monitoring the effect of concentrated ownership has a positive impact on firm value. However, the economic channel of such a positive impact has not been examined. This study offers a possible economic channel and tests it empirically using a panel of Indian firms. The hypothesis of the paper is that concentrated ownership increases the competitiveness of the firms, through efficient monitoring of their activities, in their product markets, thus increasing the growth rate of firms. The results show that both institutional and promoter ownership have a positive impact on firm competitiveness. However, foreign concentration has an insignificant impact. Moreover, for business group-affiliated firms, only institutional concentration has a positive impact. The results remain robust for different specifications and endogeneity issue. [ABSTRACT FROM AUTHOR]

Value-based accounting has significant impact on financial reporting of organizations. Value-based accounting distinguishes itself from traditional cost-based accounting by including the future outlook. This paper attempts to provide the present scenario of valuebased accounting with respect to Indian industries. It also attempts to apply the valueadded model in Indian industry to understand the relation of value addition with book value of net profits. It tries to measure the performance of organizations on the basis of different value-based accounting. Using the data of organizations included in the BSE 100 index for the year 2009, the paper identifies the contribution of variables belonging to income and expenses to value addition of the organization through regression analysis. It is found that Economic Value-Added (EVA) of Indian organizations is always lower than the accounting profit. However, most of the organizations in India have positive Market Value-Added (MVA). But the continuance of negative EVA in future would also result in negative MVA. [ABSTRACT FROM AUTHOR]

In recent times, many highly leveraged companies in Indian corporate sector followed the route of disposal of their non-core assets to reduce the debt burden. 'Non-core assets' means the assets not used in core business operations. The purpose of this paper is to develop a conceptual framework about the non-core assets, its relevance and fill the gap in disclosure requirement in companies' financial statements in this regard. Existing disclosure requirements limit the information availability regarding the holding of non-core assets on the face of the balance sheet statement as well as in notes to accounts. The paper using the existing literature, in addition to information available in Revised Schedule VI to the Companies Act 1956 and Indian Accounting Standards 1, 6 and 10, finds that disposal of non-core assets during the turbulent times are one of the common practices. However, there are lacunas in the disclosure requirements regarding the noncore assets in company's financial statements. The findings of the present study may attract the attention of various users of financial statements and may form the base for revising the disclosure norms in this regard to bring greater transparency. The study is a pioneering attempt to examine the possibility of showing each class of fixed tangible asset under the heads 'core assets' and 'non-core assets' to facilitate better decision making and compliance with the conventional wisdom of transparency, corporate governance and full disclosure. [ABSTRACT FROM AUTHOR]

With increasing globalization and integration of capital markets, the world is fast adopting a single language of financial reporting, i.e., International Financial Reporting Standards (IFRS). More than 100 countries have adopted IFRS and many others have given their consent to adopt IFRS in the near future. India is in line to converge with IFRS. This paper investigates the impact of IFRS adoption on financial activities of Indian companies by using a sample of eight companies for three years, 2010-11 to 2012-13. The study considers four areas of financial activity, i.e., financial risks, investment activities, operating activities and debt covenants. The results reveal that the financial indicators, investment activities and operating activities have been significantly affected by the adoption of IFRS, while financial risks and debt covenants fail to show a statistically significant impact. [ABSTRACT FROM AUTHOR]

This paper explores the association between a firm's R&D spending and its future returns. Unlike the US firms, which can only expense R&D, Australian GAAP permits firms to either expense or capitalize their R&D expenditure. India is following Ind AS 38 which requires research expenditure to be recognized as expense and development expenditure to be recognized as an intangible asset if, and only if specified criteria are met, otherwise shall be recognized as an expense. Hence, Indian setting provides for the use of both methods of accounting either expenser or capitalizer. However, less research is available that relates R&D spending of a firm to its future returns. The present study tries to find out the relationship between R&D expenditure and its future returns for R&D active Indian firms. The study is based on 15 years (2001-2015) CMIE data selected from those companies which have R&D activities during the span of the sample period. The market impact of the R&D intensity of all R&D active firms, 'capitalizer's and 'expenser's has been examined separately. The results suggest that capitalized portion of R&D is capable of generating more future returns. Expensed portion of R&D is not strongly associated with future holding period returns. However, it is observed that the firms who expensed their total R&D expenditures perform better in comparison to the firms who capitalized their total R&D expenditures. [ABSTRACT FROM AUTHOR]

International Financial Reporting Standards (IFRS) set by the International Accounting Standards Board (IASB) are adopted by the companies for the preparation of the financial statements. This ensures easy understanding and facilitates comparability of the financial statements of different enterprises of different countries and provides relevant and meaningful information to the various users of the financial statements. In India, the new set of standards which have been converged with IFRS is known as Indian Accounting Standards or Ind AS and will be implemented in India in a phased out manner (Phase 1, 2 and 3) as have been notified by the Ministry of Corporate Affairs on February 25, 2011. The recent announcement made by the Finance Minister in the year 2015 made it mandatory for all the listed companies either to adopt IFRS or converge with effect from the accounting year 2016-17. IFRS is recommended for adoption with several benefits in mind and some of the companies have already adopted new standards and have started reporting accordingly. In this context, the present paper presents an overview of double adoption of IFRS globally by the significant trade forums and the Indian companies which are voluntarily adopting IFRS. It also analyzes the financial implications of adoption of IFRS by the select companies in India. The study is based on secondary data, and Gray comparability index, t-test and F-test are employed for analyzing the data. [ABSTRACT FROM AUTHOR]

International Financial Reporting Standards (IFRS) are designed as a common set of language for business affairs so that company accounts could be understandable and comparable across international boundaries. IFRS leads to changes in the financial statement of the company. In order to check whether shareholders' wealth is affected or not by adoption of IFRS, the present research has been carried out. The objectives of the present paper are to determine the shareholders' wealth in terms of EVA (absolute and relative) before and after adoption of IFRS for Indian companies and to examine the different components of EVA before and after adoption of IFRS in India. To check the impact, paired data t-test has been administered for testing significance. The results of the study reveal that there is no improvement in EVA and EVA-related financial parameters due to IFRS adoption. For consistency concern, coefficient of variation has also been calculated. The results indicate that consistency in EVA and EVA-related financial parameters is observed after adoption of IFRS. It may also be concluded that the fundamental principle of accounting, i.e., consistency, is supported to a large extent by IFRS adoption. [ABSTRACT FROM AUTHOR]

International Financial Reporting Standards (IFRS) or converged Indian Accounting Standards (Ind AS) and its implications are imperative for Indian companies. India has decided to converge with IFRS, which means that India will have its own converged standards in line with the IFRS. On January 2, 2015, the Ministry of Corporate Affairs notified (PIB, 2015) that Ind AS would be mandatorily applicable for accounting period ending March 31, 2016 for companies falling under certain classifications. It is expected that once these are implemented, it will have a significant impact on financial statements. The convergence of IFRS will benefit Indian companies as they would be comparable to the peers internationally, which in turn would lead to a greater equity and debt participation by international players, thus making funding easier and cheaper. This paper focuses on two key issues: Are financial statements prepared using the two different standards significantly different? And, is there an increase in equity participation of foreign investors in Indian companies which have adopted IFRS? Companies covered in the study report financial statements as per two accounting standards because they are listed on Indian stock exchange and NASDAQ. Since these Indian companies have dual listing (India and international), on Bombay Stock Exchange (BSE), they report as per Indian GAAP, and as these companies are listed on NASDAQ, they need to prepare financial statement using IFRS. [ABSTRACT FROM AUTHOR]

With integrated global economies and cross-border mergers and acquisitions, uniformity of financial reporting by Indian companies is inevitable for the authenticity of their financial statements worldwide. The emergence of International Financial Reporting Standards (IFRS) marks the biggest revolution in financial reporting, though not without posing challenges of convergence in India. In order to harmonize with the financial reporting worldwide, the Institute of Chartered Accountants of India (ICAI) has issued 35 IND AS--the converged accounting standards which are in line with IFRS subject to certain carve outs (differences) due to tax-related issues, as notified by the Ministry of Corporate Affairs. With reference to this convergence, this paper provides an insight into the revised framework of AS 6 - Depreciation and AS 10 - Fixed Assets, with the formation of new IND AS 16 -- Property, Plant and Equipment (PPE) and its implications through various illustrations. Moreover, the issues of recognition of assets are explained through different models of measurement, determination of their carrying amounts, accounting treatment of revaluation and depreciation charges on the assets. The analysis shows that adaptation to IFRS convergence opens new avenues for the accounting profession, followed by unforeseeable challenges. The analysis of the standard concludes that significant parts (components) of a PPE can be recognized, depreciated and derecognized separately and individually. There will be major changes in the value of PPE in the financial statements due to treatment of revaluation surplus. [ABSTRACT FROM AUTHOR]

Corporations in India are under growing pressure from internal as well as external stakeholders to achieve corporate sustainability and consider the economic, environmental and social implications of their activities. Sustainability reporting is gaining momentum globally as an important communication tool for companies to disclose their sustainability plans and performance and enhance stakeholder confidence. This paper aims to review the various initiatives and trends of corporate sustainability with special reference to the recent trends of sustainability reporting in India. It also provides an overview of the development of various guidelines related to corporate sustainability reporting. The study finds that the sustainability reporting scenario in India is still at nascent stage. However, it contends that Indian corporations have been showing positive signs in embracing this concept, and the recent policy developments shall also encourage the reporting efforts in India. [ABSTRACT FROM AUTHOR]

There are many applied approaches to corporate social reporting. They range from simple 'narrative disclosures' which provide nonfinancial qualitative information about social responsibilities discharged by the concerned company to 'financial disclosures' which provide financial or quantitative information about the same. This paper examines the existing models of corporate social reporting and aims to develop a suitable model for Indian companies. [ABSTRACT FROM AUTHOR]

In the corporate sector, capital structure decisions are vital and there are numerous internal (firm's characteristics) and external factors (fiscal policy, monetary policy, inflation rate and other economic conditions) that affect the capital structure decisions of a company. An erroneous capital structure decision can spoil a company's fundamentals. This study inspects the key determining factors of fund structure decisions through firm-specific determinants of NIFTY 50 Index Companies in India. The objective is to assist corporations in making capital structure decisions. A thorough review of literature has been undertaken to find out key internal determinants of capital structure decisions. The study finds that profitability, size of the firm, tax rate, tangibility, liquidity, age of the firm and trade risk are noteworthy in determining leverage decisions of a firm. [ABSTRACT FROM AUTHOR]

A number of publicized accounting frauds around the world, such as Satyam fraud (India), Enron failure (USA), Tyco failure (Ireland), show that firms use Related Party Transactions (RPTs) to manage earnings for financial reporting purposes or to divert firms' resources to their controlling shareholders at the expense of minority shareholders. This study aims to explore the relationship between RPTs and earnings management practices of selected companies in India. The amount of discretionary accruals derived from modified Jones models (Dechow et al., 1995) is used as a proxy to measure earnings management. Based on 218 firm-year observations taken from BSE-200 index based companies for the financial year 2014 and 2015, this study finds that there is a statistically significant relationship between RPTs and earnings management. The findings also reveal that the effect of new RPT regulations in mitigating earnings management is not significant. [ABSTRACT FROM AUTHOR]

The aim of the present study is to examine the value relevance of accounting information in the Indian corporate sector based on financial information on share price, book value, earnings and dividend in 125 companies selected from BSE 500 companies for the period between 2000 and 2012 using Ohlson model (1995). The results indicate that accounting information has high value relevance in Indian corporate sector with dividend, book value and earnings with their respective adjusted R2 values of 40%, 34% and 21% for the period of study. The value relevance of dividend is found to increase over time as against decreases in book value and earnings. The combined influence of book value and dividend on share prices is the highest at 55% during the period of study. Finally, it was found that there is a significant association between share price and the three accounting variables used in the study at the significance level of 0.05. The study also indicates that accounting variables influence share prices and hence there exists financial reporting quality in Indian corporate sector. The present research has strong implication on the role of accounting information in developing rational investor behavior in the stock markets. [ABSTRACT FROM AUTHOR]

In the scenario of economic and financial globalization where the countries around the world are moving towards adoption of International Financial Reporting Standards (IFRS) as their financial reporting language, India could not cocoon itself from this phenomenon occurring globally. Accordingly, India resolved to converge Indian Accounting Standards with IFRS at the G20 Summit in 2009. Consequentially, a new set of reporting standards known as Ind AS were issued by Accounting Standards Board (ASB) in India. Ind AS or Indian Accounting Standards converged with IFRS have now become the new accounting standards applicable for preparation of financial information by Indian companies. This study discusses how in a phase-wise manner, Ind AS will be implemented and explores the impact of Ind AS transition on selected key accounting areas. [ABSTRACT FROM AUTHOR]

Organizational legitimacy, social contract and political cost theory are perhaps the most important reasons for social disclosure. Value-added statement in this direction can be considered as one of the most important instruments of social disclosure. In the present study, a modest attempt has been made to shed some light on the existing status of value-added reporting via value-added statement in India and to propose suggestions to improve the quality of information disclosed through value-added statement so that it can become much more useful, informative and effective. For attaining the objectives, content analysis of the annual reports of the select 50 companies of India is conducted for the period 2008-09 to 2013-14. The analysis reveals that value-added reporting in the annual reports is not at all popular amongst the blue chip Indian companies. [ABSTRACT FROM AUTHOR]