“…India has unfortunately witnessed manipulation of earnings in big companies such as Satyam and Kingfisher Airlines. A significant amount of research has been undertaken in India to understand earnings management in the context of multi-nationality of firms, auditor's perceptions, financial distress, Initial Public Offers (IPO) and mangers' fixation on operating profits (Gakhar, 2014;Agrawal & Chatterjee, 2015;Nagar & Sen, 2016;Shette et al, 2016;Ghalke et al, 2018;Goel, 2018). To expand this literature by including an understanding of the impact of EM practices on a firm's stock prices, the present study tests the value relevance of earnings and book values of Indian listed firms in the presence of earnings management practices.…”