The Effects of Real Earnings Management on the Profitability of the Company

Abstract

This research paper was focused on investigating the effects of managing real earnings on the profitability performance of a company. The study used secondary data where co-relational research design was employed. The study used 250 companies selected from “Top 500 Companies listed on the Bombay Stock Exchange” as the sample of the study. The research findings explicitly show that managing real earnings practices adversely affect the company performance together with its corporate value. This research thus expansively contributes to the existing knowledge and literature on the relationship between managing real earnings activities and the profitability performance of a company and its corporate value.