Paper Title
AN ANALYSIS OF DIVIDENDS AND EARNINGS QUALITY IN THE INDIAN CONTEXTAbstract
The complex interrelationship between dividends and profits quality is examined in this research study in the context of the Indian business environment. Dividends are a crucial part of how shareholder money is distributed, and the quality of an organization\'s profits is a key sign of its financial success and openness. This research aims to experimentally analyze the connection between dividends and earnings quality and how it affects different stakeholders.
The research makes use of a substantial dataset that includes financial and accounting data from a wide range of Indian enterprises representing all sizes and industry sectors. Through a multidimensional methodology that takes into account accruals manipulation, earnings management, and the integrity of financial reporting, the quality of earnings is assessed. To identify possible trends and connections, dividend-related variables such as dividend payout ratio, dividend yield, and dividend coverage are examined in combination with earnings quality indicators.
The research sheds light on the direction of causation between dividends and profit quality using sophisticated econometric methods. The research adds to the body of knowledge by illuminating possible methods by which dividends may be impacted by earnings quality and vice versa. The research also investigates how corporate governance systems and legal frameworks in India influence the link between dividends and profits quality.
For a variety of stakeholders, including investors, financial analysts, regulators, and politicians, the findings of this study have important ramifications. A better understanding of the relationship between dividends and earnings quality may help investors make wise choices, analysts evaluate the financial health of a company, and regulators improve corporate governance standards. In the conclusion, the research aims to further the conversation on dividends, earnings quality, and their contribution to improving the sustainability and transparency of Indian firms.
KEYWORDS : Dividends, Earnings Quality, India, Financial Reporting, Corporate Governance, Shareholder Wealth, Accruals Manipulation, Earnings Management.