Browsing by Author "Sharif, Dr. Md. Jamil"

Filter results by typing the first few letters
Now showing 1 - 2 of 2
  • Thumbnail Image
    Item
    Detecting Earnings Manipulation Practice by the M-Score Model: Evidence from the Listed Power Companies of Bangladesh
    (Faculty of Business Studies, BUFT, 2023-09-01) Sharif, Dr. Md. Jamil; Asfakuzzaman
    Purpose: The study aims to detect earnings manipulation practices, if any, and to investigate the relationship between company-specific characteristics and earnings management in the power sector of Bangladesh. Methodology: In this study, a panel dataset comprising data from annual reports of 22 power sector companies listed in the DSE was utilized. The dataset spanned seven consecutive years, from 2014 to 2020. To identify earnings manipulation practices, the researchers employed the Beneish M-Score model. Findings: The results of this study indicate that approximately 30% of the Fuel & Power sector companies listed in Bangladesh engage in information manipulation. Moreover, it was found that 64% of these manipulators received an unqualified opinion from auditors. Among the 22 selected power companies, 18 exhibited significantly higher M-Scores for at least one year during the period of 2014-202. Regression analysis shows that accrual quality has a significant positive association with earnings management, while the firm size and audit quality are negatively related to earnings manipulation. However, firm age and audit opinion did not demonstrate any significant influence on earnings management. Originality/Value: This study marks the pioneering use of the Beneish MScore model in the Fuel & Power sector of Bangladesh to detect earnings management practices. The findings suggest that having more non-cash items in the income statement allows management to manipulate, and large firms with strong corporate governance are less likely to manipulate information. These findings are valuable for decision-makers and stakeholders such as investors, policymakers, and the government. Limitations: Only one sector has been chosen for investigation in this study. Selecting more samples from each industry could give a broader picture of earnings manipulation practices by the companies in Bangladesh.
  • Thumbnail Image
    Item
    The Effect of Corporate Governance Practice on Firms’ Profitability in the Manufacturing Industry of Bangladesh
    (Faculty of Business Studies, BUFT, 2020-08-01) Sharif, Dr. Md. Jamil; Hossain, Md. Ismail
    Purpose: The main purpose of this study is to find the extent of corporate governance practice impacting profitability of the manufacturing companies in Bangladesh. Methodology: To investigate the impact, 103 firm-years have been used as a sample from the manufacturing sector of Bangladesh. Besides, Pooled OLS robust regression models have been used here to analyze. Findings: The regression result shows that there is a significant positive relationship between female directors in the board and ROE of the company, and a significant negative relationship between family dominance in the board and ROE of the company. But the result does not show any significant relationship between corporate governance practices and ROA. However, there is a significant positive relationship between female directors in a board and EPS, and audit firm quality and EPS of the firm. There is also a significant negative relationship between family dominance in the board and EPS. Limitations: The study is limited to some fixed industry data and time period and the results can vary if time period and industries are changed. Practical Implications: In the paper, empirical evidence suggests that corporate governance mechanisms can be used as effective tools to improve performance of the firms, and it can help the policy makers and regulators to set regulations in the developing countries like Bangladesh. Originality/Value: The uniqueness of the paper is the industry setting, as most of the researches use the banking sector, a very highly regularized sector, to show the effect. The study has used information from manufacturing industry and it also has used more variables than the variables used in previous studies to define corporate governance.