http://dspace.dtu.ac.in:8080/jspui/handle/repository/16296 2026-06-29T11:47:06Z 2026-06-29T11:47:06Z KAUR, AMANDEEP Maheshwari, G.C. (SUPERVISOR) Singh, Archana (CO - SUPERVISOR) http://dspace.dtu.ac.in:8080/jspui/handle/repository/22879 2026-06-24T05:44:41Z 2026-05-01T00:00:00Z

Title: ROLE OF CORPORATE GOVERNANCE IN EARNINGS MANAGEMENT Authors: KAUR, AMANDEEP; Maheshwari, G.C. (SUPERVISOR); Singh, Archana (CO - SUPERVISOR) Abstract: Earnings management remains a central focus of academic inquiry and regulatory concern, particularly in emerging markets, where evolving governance mechanisms and institutional frameworks shape managerial discretion in financial reporting. The extraordinary disruption caused by the COVID-19 pandemic has heightened academic attention toward examining how firms adjust their reporting behaviour during periods of crisis. Unlike conventional financial or economic downturns, the COVID-19 crisis originated from non-economic sources yet resulted in widespread disruptions to production, supply chains, demand cycles, and capital markets. This unique context has raised significant questions about the incentives, opportunities, and constraints influencing earnings management practices during periods of extreme uncertainty. Prior empirical evidence offers mixed conclusions: while several studies document increased manipulation as firms attempt to portray distress or manage contractual pressures, others observe improved earnings quality driven by heightened monitoring, relaxed investor expectations, and elevated litigation risks. Against this backdrop, the present study provides an integrated examination of how corporate governance, audit quality, promoter ownership, firm-level cost determinants, and regulatory reforms interact to influence both accrual-based earnings management and real earnings management in India. The study is motivated by the distinctive characteristics of the Indian corporate structure, where concentrated promoter ownership, family-led management, and less stringent enforcement environments create conditions that differ significantly from those in widely held ownership systems typical of developed markets. High-profile accounting scandals, including those involving Satyam Computers, IL&FS, DHFL, and the PNB–Nirav Modi scam, have revealed recurring gaps in internal controls, auditor oversight, and board independence, underscoring the need to investigate viii earnings management behaviour within India’s institutional context. The adoption of Ind-AS, which converged with IFRS, represents a significant regulatory development aimed at enhancing the credibility of financial reporting. However, emerging literature suggests that while stricter recognition and measurement rules may curb some forms of accrual manipulation, they may simultaneously incentivise a shift toward more opaque and harder-to-detect forms of earnings management, such as manipulation through real activities. In line with this, the study applies a multi-period empirical methodology to investigate shifts in earnings management behaviour across the pre Ind-AS, post-Ind-AS, and COVID-19 periods. The study is designed to address three fundamental objectives. Initially, the research evaluates how the adoption of Ind-AS influences accrual-based earnings management among Indian companies. The study incorporates Beneish M-score parameters and discretionary accruals to examine the differences between pre- and post-Ind-AS periods. Results indicate that while key indices linked to performance pressure, such as the Gross Margin Index and Sales Growth Index, were strong predictors of accrual manipulation in the pre-Ind-AS era, their influence weakened significantly post adoption. This suggests that enhanced revenue recognition standards and improved disclosure requirements under Ind-AS have reduced opportunities for traditional forms of manipulation. Nevertheless, the continued significance of Total Accruals to Total Assets confirms that accrual-based manipulation has not been eliminated, highlighting the need for more targeted enforcement. The research also seeks to determine whether governance mechanisms are effective in limiting accrual-based and real earnings management under differing economic environments, particularly during the pandemic. Empirical evidence suggests that, under normal economic conditions, board independence, board size, and Big Four auditor engagement serve as effective monitoring mechanisms to curb earnings management. However, these mechanisms lose strength under crisis conditions. During the pandemic, logistic constraints, virtual board meetings, and audit disruptions appear to have diminished oversight quality. Consistent with institutional theory, governance mechanisms operated primarily symbolically rather than substantively, ix thereby weakening their ability to constrain managerial opportunism. Firm-specific attributes, such as size, leverage, and profitability, also exhibit different effects during crisis versus non-crisis periods. Distressed firms exhibit more conservative reporting behavior during the pandemic due to heightened scrutiny and concerns about survival. The third objective investigates whether accrual-based and real earnings management function as substitutes or complements in Indian firms. While firms in stable periods appeared to use these techniques selectively in response to contextual incentives, the pandemic introduced a shift in strategy. As real activity manipulation became costlier and operationally difficult during lockdowns, many firms relied more heavily on accrual adjustments. During the pandemic period, a statistically significant positive relationship between unexpected real and accrual-based earnings management suggests that firms employ these strategies in a complementary manner in response to increased economic pressure. The findings also show that promoter ownership moderates this relationship, with higher promoter dominance curbing manipulation under distress, which may stem from long-term reputational concerns or the ability to absorb temporary losses. Overall, the findings enrich the theoretical discourse on earnings management by demonstrating that managerial reporting choices are shaped by an interplay of regulatory environments, crisis conditions, cost structures, and governance quality. The study contributes to agency theory by highlighting how monitoring failures create opportunities for earnings manipulation; to stewardship theory by revealing contexts in which unified leadership may reduce earnings management; and to institutional theory by showing how governance mechanisms may lose effectiveness during systemic disruptions. It also extends the cost-based trade-off framework by explaining why firms switch between earnings management techniques in response to resource constraints and external monitoring. The study offers important policy implications for regulators, auditors, boards, and investors. Strengthening enforcement mechanisms, enhancing audit independence, adopting data analytics-driven supervision, and promoting genuinely independent x board structures could collectively improve earnings quality. Furthermore, crisis responsive governance frameworks and revised auditing protocols are crucial in preventing opportunistic reporting in volatile environments. By integrating insights from an emerging economy undergoing significant regulatory transformation, this study advances the global understanding of earnings management behaviour and strengthens the literature on corporate governance, financial reporting, and crisis driven managerial incentives.

2026-05-01T00:00:00Z SETHI, PALLAVI SINGH, Archana (SUPERVISOR) GUPTA, VIKAS (CO-SUPERVISOR) http://dspace.dtu.ac.in:8080/jspui/handle/repository/22701 2026-04-29T04:57:49Z 2026-03-01T00:00:00Z

Title: POST-REVIVAL PERFORMANCE ANALYSIS OF FINANCIALLY DISTRESSED INDIAN COMPANIES Authors: SETHI, PALLAVI; SINGH, Archana (SUPERVISOR); GUPTA, VIKAS (CO-SUPERVISOR) Abstract: NOT AVAILABLE

2026-03-01T00:00:00Z DESWAL, RANJANA Garg, Suresh Kumar (SUPERVISOR) http://dspace.dtu.ac.in:8080/jspui/handle/repository/22700 2026-04-29T04:01:39Z 2026-03-01T00:00:00Z

Title: GOOD GOVERNANCE AND CITIZEN HAPPINESS: A STUDY IN NCT OF DELHI Authors: DESWAL, RANJANA; Garg, Suresh Kumar (SUPERVISOR) Abstract: “Good Governance and Citizen Happiness: a study in NCT of Delhi” explores the role of government policies in enhancing citizen happiness and their broader socio-economic impacts. The study aims to find out the government policies that are highly relevant for citizens in enhancing their happiness. Happiness has now been accepted as a goal of public policy. This has interconnected happiness and governance intricately. Trust in public institutions is crucial for human well-being. Inequality lowers the happiness In devising policy, citizen happiness should be considered as one of the objectives. Though higher GDP and higher per capita income are important but there exists a link between the state of happiness and rule of law. In measuring progress, now researchers are including happiness as one of the measures. How to handle inequality and achieve long-term sustainability appears to be the key challenge of governance and happiness. In the Indian context, very few studies are available to find the role and impact of government policies on citizen happiness. The major gap is the absence of considering the relevance and quality of implementation of multiple policies together in one study. This analysis draws on diverse contexts including India’s Government policies of social welfare, the governance models of Nordic countries, the transformative potential of Artificial Intelligence (AI) in public policy, and the urban development strategies under India’s Smart Cities Mission. In this study methodology has been designed to take perspectives of various stakeholders. The respondents included beneficiaries, policy makers and implementation executives. Primary data was collected using a structured questionnaire with comprehensive scale of 40 items covering different policy dimensions. Tools of Excel and SPSS were used for analysis. vi Techniques of Descriptive analysis to identify patterns, advanced technique of TISM was applied to map relationships while case study provided deeper contextual insights. Government policies of social welfare, law and order, pollution health, education and creating opportunities have been studied and found to improve citizen happiness by ensuring effective resource allocation, efficient implementation mechanisms, and relevance to citizen needs. These policies contribute to a productive and innovative workforce, which in turn promotes a cooperative and sustainable business environment, reinforcing economic growth. Nordic countries have consistently ranked higher in the United Nations World Happiness Report mainly due to four factors: comprehensive social welfare and public services, adherence to rule of law and justice, protection of freedom and human rights, and sustained economic stability. The Total Interpretative Structural Model (TISM) derived from these insights offers a strategic framework for policymakers aiming to replicate such success, enhancing transparency and trust in public institutions. The integration of AI in public policy constitutes an innovative step for efficient policy design and deployment. AI’s capacity to analyse complex demographic and socio-economic data enables simulation of policy scenarios and optimization of resources. Digital governance and data-driven monitoring further ensure effective implementation, bridging gaps between policy intent and impact to enhance citizen happiness. India’s Smart Cities Mission illustrates the application of technology innovation with the aim of improving the quality of life in cities. By implementing, smart economy, smart mobility, smart environment, smart people and smart living, this initiative demonstrates how targeted policies can improve citizen happiness and promote sustainable development. Collectively, these insights affirm that Governments which prioritize citizen wellbeing in their policymaking can stimulate economic growth, enhance social cohesion, and ensure sustainable vii development. However, in this study only select policies have been examined in the setting of Delhi, with respondents drawn from the same region and it is based on descriptive methods, interviews, and case studies. Further work will use factor analysis to identify key drivers & Structural Equation Modelling to establish relationships among them. Future empirical studies can help to confirm relationships between impact of citizen happiness and the business & economic environment and measure their strength more precisely.

2026-03-01T00:00:00Z SISODIA, ANJALI Maheshwari, G. C.(SUPERVISOR) Malhotra, Deepali (CO-SUPERVISOR) http://dspace.dtu.ac.in:8080/jspui/handle/repository/22699 2026-04-28T10:02:41Z 2024-12-01T00:00:00Z

Title: COST OF CAPITAL & CAPITAL STRUCTURE – A STUDY OF SELECTED INDIAN COMPANIES Authors: SISODIA, ANJALI; Maheshwari, G. C.(SUPERVISOR); Malhotra, Deepali (CO-SUPERVISOR) Abstract: The relationship between capital structure and cost of capital is a fundamental aspect of corporate finance. It involves understanding how the mix of debt and equity financing affects a company’s overall cost of capital, which in turn influences its valuation and financial strategy. This study investigates the relationship between capital structure and cost of capital for selected companies listed on the NIFTY 50 index over the period 2010-2024. The analysis focuses on various determinants of capital structure and their impact on the overall cost of capital, substantiated through prominent capital structure theories such as the Trade-Off Theory, Pecking Order Theory, and Agency Theory. The study examines the determinants of capital structure by identifying key variables influencing the capital structure of NIFTY companies. The secondary data from financial statements of NIFTY 50 companies, spanning 2010-2024 has been investigated and dependent variables like debt-equity ratio and independent variables: tangibility, taxability, liquidity, profitability and WACC were analysed. The regression analysis to explore the impact of independent variables on the capital structure and cost of capital is implemented. Literature indicates that debt financing offers tax benefits since interest payments are tax-deductible. This deduction reduces the company’s taxable income and, consequently, its tax liability, effectively lowering the cost of debt. However, excessive reliance on debt increases financial risk, particularly during economic downturns or periods of cash flow issues. As a result, lenders may demand higher interest rates to compensate for the increased risk, thus raising the cost of debt. Generally, the cost of debt is lower than the cost of equity due to the tax shield. Yet, as debt levels rise, the marginal cost of additional debt increases because of the heightened risk of financial distress. In contrast, equity financing does not provide tax benefits, making it more expensive than debt. Investors require a higher return on equity to compensate for the greater risk compared to debt. However, equity financing offers greater financial flexibility and reduces the risk of financial distress. Companies with higher equity levels are better positioned to withstand economic downturns and have more flexibility in their financial strategies. One potential drawback of issuing new equity is the dilution of existing shareholders’ ownership, which may concern current shareholders and management. The study found that moderate levels of debt can reduce the overall cost of capital due to tax benefits. However, high levels of debt increase financial risk and the cost of capital. Companies with higher equity levels tend to have a higher cost of capital due to the higher required return on equity. However, these companies also benefit from greater financial stability and flexibility. The optimal capital structure for NIFTY companies appears to be a balanced mix of debt and equity, where the cost of capital is minimized, and financial flexibility is maintained. The relationship between capital structure and cost of capital is complex and influenced by various factors, including tax benefits, financial risk, and investor expectations. The findings from the study of NIFTY companies suggest that a balanced approach to capital structure, leveraging both debt and equity, can help minimize the overall cost of capital while maintaining financial stability. The study concludes that the capital structure of NIFTY companies is influenced by multiple factors, including tangibility, taxability, liquidity, profitability and WACC. These determinants play a crucial role in shaping the cost of capital. The findings align with prominent capital structure theories, providing a comprehensive understanding of the dynamics between capital structure and cost of capital for Indian companies. This study provides valuable insights into how companies can optimize their capital structure to minimize the cost of capital. Corporate Managers can use the findings to make strategic decisions about financing, balancing debt and equity to minimize the cost of capital and enhance shareholder value. It is important for strategic financial planning, helping companies make informed decisions about financing options. The companies by understanding the optimal mix of debt and equity, can achieve financial stability, reducing the risk of financial distress and contributing to overall economic stability. Policymakers can use the findings to develop regulations that encourage optimal capital structures, promoting sustainable economic growth fostering a stable and efficient financial market. The insights help investors and financial analysts assess the financial health and risk profile of companies, leading to more informed investment decisions and portfolio management. The research provides a foundation for further studies on capital structure, encouraging exploration of new variables and models in different economic environments.

2024-12-01T00:00:00Z