Earnings management and Stock Market Return: An Investigation of Lean against the Wind Hypothesis

Authors

  • Amir Sajjad Khan International Islamic University Islamabad

Abstract

This study attempts to investigate the “lean against the wind hypothesisâ€. For this purpose the relationship of earnings management to that of the aggregate stock market return was investigated. Data for the year 2005 to 2009 was examined and Panel Data techniques were applied on the data set. F-statistics were used to check for appropriateness of the model, Housman test were used to finally decide for fixed effect model. Results of the paper were against the existence of lean against the wind behavior of the firms towards the aggregate under valuation of stock market returns. These Results were in favor of the past study of Cohen and Zarowin (2011).

Keywords: Earnings management, Discretionary accruals, Modified Jones model, KSE

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Author Biography

Amir Sajjad Khan, International Islamic University Islamabad

Research Student of Management Sciences, Specializaiton in Finance

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Submitted

2013-07-25

Accepted

2013-08-28

Published

2013-09-03

How to Cite

Khan, A. S. (2013). Earnings management and Stock Market Return: An Investigation of Lean against the Wind Hypothesis. The Asian Journal of Technology Management (AJTM), 6(1). Retrieved from https://journal.sbm.itb.ac.id/index.php/ajtm/article/view/729

Issue

Vol. 6 No. 1 (2013)

Section

Articles

License

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License. Copyright @2017. This is an open-access article distributed under the terms of the Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License (http://creativecommons.org/licenses/by-nc-sa/4.0/) which permits unrestricted non-commercial used, distribution and reproduction in any medium