Demystifying the Gimmicks of Financial Shenanigans: A Conceptual Study
Journal Title: MUDRA: Journal of Finance and Accounting - Year 2018, Vol 5, Issue 2
Abstract
Financial reporting is the best and most vital way of communicating financial information of the business to all the stakeholders. It is also the most subtle way to commit financial fraud and scandals. Corporates are using financial statements and financial reporting not to educate the stakeholders about its performance but to deceive them by supplying misleading information. Corporate financial scandals have been around since the age of corporations and investors themselves. For a long time, dishonest management has been preying on unsuspecting investors by using financial shenanigans. While most companies report their results and figures honestly to investors, a significant number of companies use accounting or financial reporting tricks to hide the truth. Those tricks are known as financial shenanigans. These techniques are used by management to mislead investors about a company’s financial performance or economic health. Corporate financial shenanigans get away in the shadows of creative accounting. So, it is indispensable for all stakeholders particularly the common man to have some idea about the financial shenanigans. This research paper focuses on understanding the concept of financial shenanigans along with its types.
Authors and Affiliations
Sanjeeb Kumar Dey, Debabrata Sharma
Keywords
Related Articles
- EP ID EP625783
- DOI 10.17492/mudra.v5i2.14327
- Views 193
- Downloads 0
A Study on Affiliation between Indian Stock Market and Macro Economic Variables
Stock market volatility is a result of complex interplay of a host of factors. Hence, it is difficult to make a correct assessment of its movement. Macroeconomic variables have are very much influential in context of the...
From Cash to Cashless Economy: Catalytic Agent for Financial Inclusion?
The announcement by Prime Minister Narendra Modi on July 1, 2015 towards “making India Digital” was meant to pave Indian economy’s future for larger proposed changes in terms of financial literacy. The drive intended to...
Financial Inclusion: A Correlational Study of Factors in Rural Uttarakhand
Inclusive development is the key to general economic growth for any economy. In any place in the world, providing financial services to this overlooked section of society is a testing assignment. The Government in India...
An Empirical Study on the Performance of Select Multicap Equity Mutual Funds in India
Mutual funds are emerging as a popular choice among investors to park their surplus funds in India as exemplified by increasing assets under management (AUM). The study discusses several industry trends such as increase...
Corporate Governance, Related Party Transactions and Firm Performance: A Panel Data Analysis
Research on examining the relationship between the extent of related party transactions (RPTs) and the firm performance lack consensus. To further investigate this relationship, we use data of a sample of 483 Indian comp...