This study investigates the impact of earnings management (EM) on the efficiency of Working Capital Management WCM) and its components. The study uses M-Score, based on the Beneish Model, as a proxy for EM and applies generalized method of moments and panel quantile regression methods to a sample of 461 Indian-listed firms. We find that EM may inversely influence the WCM efficiency of Indian firms. Managers who engage in EM tend to operate on longer cash conversion cycle and manage inventory sub-optimally. These findings have been further confirmed by using an alternative EM proxy based on the Modified Jones Model.

中文翻译：

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盈余管理对营运资金管理效率的影响


本研究调查了盈余管理（EM）对营运资本管理（WCM）及其组成部分效率的影响。该研究使用基于 Beneish 模型的 M-Score 作为 EM 的代理，并将广义矩方法和面板分位数回归方法应用于 461 家印度上市公司的样本。我们发现，新兴市场可能会对印度企业的 WCM 效率产生反向影响。从事新兴市场的管理者往往会采用较长的现金周转周期，并且库存管理效果不佳。通过使用基于修正琼斯模型的替代 EM 代理，这些发现得到了进一步证实。