Main Article Content
Abstract
In this study we describe the review of earlier studies of opportunistic and efficient earnings management. There are various studies done in developed countries and few studies happened in emerging economies to examine whether managers use their opportunism on the shoulders of investors and stakeholders. We used content analysis to review earlier studies to find the behaviour of managers in choosing between opportunism and efficiency. From the review we understood that the prime intention of managing earningsis not the welfare of investors; but at the same time the overall findings interpret that earnings management is not fully injurious to the investors’ welfare. The study further examined the factors that can curtail the opportunistic behaviour of managers in reporting earnings. It is then finds evidence that presence of institutional investors, large proportion of promoter share capital and external finance help to reduce the managerial opportunism.