Purpose

Prior studies document that managers engaged in shifting of non-operating revenue to operating revenue (revenue shifting) and shifting of operating expenses to non-operating expenses (expense shifting (ES)) within income statement to report inflated operating profits of firms. This study aims to identify the factors affecting revenue shifting and ES.

Design/methodology/approach

The operating revenue model (Malikov et al., 2018) and the core earnings expectation model (McVay, 2006) are used for measuring revenue shifting and ES, respectively. The panel data regression models are used to analyze the data for this study.

Findings

The study results show that large and old firms are engaged in revenue shifting, whereas small and young firms prefer ES over revenue shifting for reporting inflated operating profits. These results imply that firms choose the shifting strategy based on relative advantage and ease in execution. The results are robust after controlling for accruals earnings management, real earnings management and endogeneity bias.

Practical implications

It suggests investors minutely investigate the operating performance metrics of initial public offering firms that are relatively small and young while buying their shares. Besides, findings suggest accounting standard setters make more mandatory disclosure requirements for recording expense and revenue items in the income statement to curb this corporate misfeasance of classification shifting.

Originality/value

This is among the earlier attempts to identify firm-specific factors that incentivize firms to prefer one form of shifting over another. Second, the study jointly examines both forms of shifting by taking a uniform sample of firms over the same period. Most of the prior studies have examined one form at a time.

中文翻译：

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企业规模和企业年龄对分类转换的影响：对印度上市企业的实证研究

目的

先前的研究表明，管理人员在损益表中从事将营业外收入转移到营业收入（收入转移）和营业费用转移到营业外费用（费用转移（ES）），以报告公司夸大的营业利润。本研究旨在确定影响收入转移和 ES 的因素。

设计/方法/方法

营业收入模型 (Malikov et al. , 2018) 和核心盈利预期模型 (McVay, 2006) 分别用于衡量收入转移和 ES。面板数据回归模型用于分析本研究的数据。

发现

研究结果表明，大公司和老公司都在进行收入转移，而小公司和年轻公司更喜欢 ES 而不是收入转移，因为它报告了虚增的营业利润。这些结果意味着公司选择基于相对优势和易于执行的转移策略。在控制了应计盈余管理、实际盈余管理和内生性偏差后，结果是稳健的。

实际影响

它建议投资者在购买股票时仔细调查规模相对较小和年轻的首次公开募股公司的经营业绩指标。此外，调查结果表明，会计准则制定者对在损益表中记录费用和收入项目提出了更多的强制性披露要求，以遏制这种企业分类转移的不当行为。

原创性/价值

这是早期尝试确定激励公司更喜欢一种形式的转移而不是另一种形式的公司特定因素的尝试之一。其次，该研究通过对同一时期的公司进行统一抽样，共同检验了这两种形式的转移。大多数先前的研究一次检查一种形式。