Published on: August 2026
ARTIFICIAL INTELLIGENCE ADOPTION AND EARNINGS MANAGEMENT: EVIDENCE ON FINANCIAL REPORTING QUALITY OF INDIAN LISTED COMPANIES
Bansi Satasiya
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Abstract
Artificial intelligence (AI) technology is being widely adopted by companies for automation, information processing, decision-making and financial management purposes. The increased usage of AI in the operations of companies raises several important concerns regarding its effects on financial reporting practices and quality of earnings. The present study is going to analyze the relationship between AI adoption and earnings management among Indian listed non-financial companies where earnings management will be the key determinant of the financial reporting quality. This study follows a quantitative and empirical research design that is rely solely on secondary data from FY 2021-22 to FY 2025-26 depending on data availability. The measurement of AI adoption will be made through the use of an AI Adoption Index based on AI-related disclosures in annual reports and official company disclosures. Earnings management is measured using an accrual-based approach while the Modified Jones Model is going to be considered as the technique for discretionary accrual estimation.
Firm size, leverage, profitability and sales growth are going to be used as control variables. Descriptive statistics, correlation analysis, multicollinearity diagnostic tests and regression analysis are going to be applied using panel-data approach. The goal of the study is to make an addition to the literature on the subject by analyzing empirically the relationship between AI adoption and earnings management among Indian listed non-financial companies and thus to see if greater AI adoption leads to lower earnings management practices and financial reporting quality.
Keywords- Artificial Intelligence; AI Adoption; Earnings Management; Financial Reporting Quality; Indian Listed Companies; Secondary Data
How to Cite this Paper
Satasiya, B. (2026). Artificial Intelligence Adoption and Earnings Management: Evidence on Financial Reporting Quality of Indian Listed Companies. International Journal of Creative and Open Research in Engineering and Management, <i>02</i>(8), 1-9. https://doi.org/10.55041/ijcope.v2i8.203
Satasiya, Bansi. "Artificial Intelligence Adoption and Earnings Management: Evidence on Financial Reporting Quality of Indian Listed Companies." International Journal of Creative and Open Research in Engineering and Management, vol. 02, no. 8, 2026, pp. 1-9. doi:https://doi.org/10.55041/ijcope.v2i8.203.
Satasiya, Bansi. "Artificial Intelligence Adoption and Earnings Management: Evidence on Financial Reporting Quality of Indian Listed Companies." International Journal of Creative and Open Research in Engineering and Management 02, no. 8 (2026): 1-9. https://doi.org/https://doi.org/10.55041/ijcope.v2i8.203.
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