Earnings Management in Auto Sector Enterprises in India: The Corporate Governance Review

The evolution of corporate governance in India and globally is attributed to the manipulative practices by the corporate. The present paper analyzes the earnings management practices in diversified auto corporate enterprises in India. Indian auto sector has rapidly diversified in terms of its product range and the markets and therefore attracts issue of corporate governance on account of earnings management. Earnings management is evaluated and correlated on quality parameters of earnings and revenue. The results indicate accrual management in the sample companies and it is hoped the study improves investors' belief of a company's performance.