Earnings Management and Dividend Policy An Empirical comparison between Pakistani Listed Companies and Chinese listed Companies
نویسندگان
چکیده
The study is an effort to fiind out the impact of earnings management on dividend payout policy for two coutries that is Pakistan and China. A set of listed Companies in both of the countries have been investigated to analyze the relationship for the year 2003 to 2007 in Pakistan and 2001 to 2007 in China. Dividend policy has been measured by dividend payout. Whereas earnings management has been measured by calculating discretionary accruals. Modified Cross Sectional Jones Model (1995) has been applied to data to determine the Earnings management. Results of Common effect model shows that for both the countries, earnings management has no impact on dividend pay out policy. This enables us to accept two of our hypothesis. However on the basis of these results our third hypothesis has been rejected stating that relationship between earnings management and dividend payout is not same in both countries.
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