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Title: Corporate accruals practices of listed companies in Bangladesh
Authors: Hasan, Shamimul
Rahman, Rashidah Abdul
Hossain, Syed Zabid
Keywords: Strategic planning -- Bangladesh
Accounting -- Bangladesh
Corporations -- Accounting
Stock exchanges -- Bangladesh
Issue Date: 2014
Publisher: Governance Research and Development Centre, Croatia & University of Malta, Faculty of Economics, Management and Accountancy, Department of Insurance
Citation: Hasan, S., Rahman, R. A., & Hossain, S. Z. (2014). Corporate accruals practices of listed companies in Bangladesh. Journal of Corporate Governance, Insurance and Risk Management, 1(1), 12-43.
Abstract: Corporate accounting scandal is not a new phenomenon and it is the outcome of corporate accruals i.e., accruals by management choice. This study investigated the use of corporate accruals in the financial statements of the listed companies in Dhaka Stock Exchange (DSE) through segregating total accruals into corporate (discretionary) and accounting (non-discretionary) accruals. The average rate of corporate accruals was 35 percent and in many cases, cash flow from operation exceeded the net income, the growth in accounts receivable was faster than sales growth, and inventory growth was not consistent with sales growth. In this context, this study may create awareness of the risk factors of corporate accruals among external users’ of accounting information especially analysts, regulator, policy makers, existing and potential shareholders, lenders, trade creditors, external auditors, researchers, financial advisors, and stock brokers. Consequently, it may reduce the use of management discretion in preparing the financial statements.
ISSN: 2757-0983
Appears in Collections:JCGIRM, Volume 1, Issue 1, 2014

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