scholarly journals Kualitas Laba: Implikasi dari Pengaruh Tenure Terhadap Kualitas Audit

2017 ◽  
Vol 17 (1) ◽  
pp. 61-76
Author(s):  
Rini Indriani ◽  
Apteerizko Dwi Kusumaputra
Keyword(s):  
Earnings Management ◽  
Audit Quality ◽  
Earnings Quality ◽  
Quality Measure ◽  
Direct Influence ◽  
Quality Audit ◽  
A Company ◽  
Intervening Variables ◽  
Simultaneous Influence

This study aims to determine whether the effect of tenure on earnings quality with quality audits are used as intervening variables. The existence of inconsistencies in the results of previous studies on the effect of tenure on audit quality such as Myers et al (2003), Manry et al (2008), Carey and Simnett (2006), Wibowo and Rossieta (2009) led to re-examined this issue to see the effect of tenure on audit quality. In addition, this study also looked at the effects of indirect and direct influence of tenure on earnings quality and tenure through a quality audit of the quality of earnings that will be the test whether the simultaneous influence. Tenure in this study are calculated by looking at how many years the KAP to audit a company, while the audit quality measure using current accruals and earnings quality measure using earnings management. Observational data in this study is a manufacturing company of the year 2006-2010 in accordance with predetermined criteria. The results of this study indicate that significant tenure was positively related to audit quality, tenure can be affected indirectly through a quality audit of the quality of earnings, and tenure through the quality audit can simultaneously affect the quality of earnings.Keywords: Tenure, Quality Audit, Quality of Earnings

scholarly journals KUALITAS LABA ATAS INTENSITAS KECURANGAN AKUNTANSI DAN MANAJEMEN LABA AKRUAL TERHADAP AGRESIVITAS PAJAK

2020 ◽  
Vol 5 (2) ◽  
pp. 199-208
Author(s):  
Rahmat Irawan ◽  
Syahril Djaddang
Keyword(s):  
Earnings Management ◽  
Structural Equation ◽  
Audit Quality ◽  
Earnings Quality ◽  
Equation Model ◽  
Test Results ◽  
Accounting Fraud ◽  
Tax Aggressiveness ◽  
The Relationship

This study aims to examine the effect of accounting fraud intensity and accrual earnings management on tax aggressiveness and test earnings quality and audit quality on the accounting fraud intensity and accrual earnings management on tax aggressiveness. The testing method in this study uses multiple regression analysis. Through purposive sampling, the sample in this study amounted to 65. The data testing used structural equation model. The test results show that the intensity of accounting fraud affects tax aggressiveness, Accrual earnings management affects the tax aggressiveness, The quality of earnings strengthens the effect of accounting fraud and accrual earnings management on tax aggressiveness and Audit quality does not moderate the relationship between accounting fraud intensity and accrual earnings management with tax aggressiveness.

Earnings Quality of Foreign versus U.S. Reverse Mergers: Geographical Location or Firm-Level Incentives?

2015 ◽  
Vol 15 (1) ◽  
pp. 49-66 ◽  
Author(s):  
Chu Chen ◽  
Giorgio Gotti ◽  
Don Herrmann ◽  
Kathryn Schumann
Keyword(s):  
Earnings Management ◽  
Audit Quality ◽  
Earnings Quality ◽  
Geographical Location ◽  
Firm Level ◽  
Business Press ◽  
Reverse Mergers ◽  
Big 4 ◽  
Reverse Merger

ABSTRACT We test whether geographical location, audit quality, and equity offering play a role in the earnings quality of reverse merger (RM) firms. We provide evidence that, contrary to the popular focus on foreign reverse mergers by the business press, earnings management is equally likely in both U.S. and foreign RM companies. We find that firm characteristics are more indicative of the likelihood to manage earnings than geographical location. The presence of a Big 4 auditor for RM firms is associated with higher earnings quality and a survival rate almost twice as high in comparison to RM firms audited by a non-Big 4 auditor. Moreover, we find that while earnings management is a common practice at all RM firms, it is especially pervasive for RM firms that are issuing new equity after the reverse merger.

scholarly journals Non-Executive Chairman, Audit Quality and Earnings Management

2020 ◽  
Vol 15 (3) ◽  
pp. 50
Author(s):  
Aditi Shams
Keyword(s):  
Earnings Management ◽  
Executive Director ◽  
Audit Quality ◽  
Earnings Quality ◽  
Governance Mechanism ◽  
Jones Model ◽  
Corporate Governance Mechanism ◽  
Total Accrual

The purpose of this paper is twofold, first, it examines the association of non-executive chairman and the quality of financial earnings and second, it examines the role of audit quality and non-executive chairman in earnings quality. This paper uses the modified jones model and the performance adjusted modified Jones model considering two cash flow methods of total accrual and perform regression analysis on the energy sector firms from the year 2010-2012. The study result does not find any significant association of earnings management and non-executive director and audit quality in the Australian context. This finding raises concerns regarding the effectiveness of such a corporate governance mechanism to maximize monitoring over the operation of the firm.

scholarly journals KEPEMILIKAN INSTITUSIONAL, KEPEMILIKAN MANAJERIAL, DAN KUALITAS AUDIT TERHADAP MANAJEMEN LABA

2017 ◽  
Vol 9 (2) ◽  
pp. 66-70
Author(s):  
inne Aryanti ◽  
Farida Titik Kristanti ◽  
Hendratno H
Keyword(s):  
Earnings Management ◽  
Audit Quality ◽  
Stock Exchange ◽  
Sampling Technique ◽  
Institutional Ownership ◽  
Managerial Ownership ◽  
Positive Direction ◽  
Panel Data Regression ◽  
A Company

The purpose of this research is to understand the influence of institutional ownership, managerial ownership, and audit quality for earnings management. The unit analysis in this research is the report of a finance company sub sector coal listed Indonesia Stock Exchange. The sampling technique of this research is used by purposive sampling and obtained 8 sub-sector coal companies in 20122015 to obtain 32 samples as observation material. Methods of data analysis in this research is panel data regression. The results showed that institutional ownership has no significant effect on earnings management, while managerial ownership influence significantly the negative direction and quality of the audit significant influence with a positive direction to earnings management so for investors should choose a company with a large managerial ownership and due attention to the quality of KAP being an independent auditor of a company that does not take the wrong investment decisions.

scholarly journals Methodological Analysis of Accounting Quality : Empirical Approach to DeAngelo’s Model and the Modified Jones Model

2021 ◽  
Vol 66 (2) ◽  
pp. 195-210
Author(s):  
Ervin Denich
Keyword(s):  
Decision Making ◽  
Earnings Management ◽  
Earnings Quality ◽  
Financial Statements ◽  
Empirical Approach ◽  
Accounting Quality ◽  
Manufacturing Companies ◽  
Jones Model ◽  
A Company

The aim of this study is twofold: the first goal is to systemise and summarise the models designed to measure the quality of financial statements, as these reports can form the basis of decision-making for the users. The second goal is to analyse the financial statements prepared by manufacturing companies acting in Baranya Country, from a quality perspective, applying the DeAngelo (1986) model and the modified Jones model (1995). Earnings quality is measured by the change in total accruals divided by total assets, considering a 4-years period of time between 2016 and 2019. Calculating the T-statistic, the amount of total accruals is a negative figure in the covered period. Consequently, it might suggest that managers make some decisions, which have a decreasing impact on earnings level of a company. Although the results of this study show some evidence of earnings management, further investigation is required in order to provide a more confident conclusion.

scholarly journals DIVIDEND POLICY, CORPORATE GOVERNANCE AND EARNINGS QUALITY: A CASE OF NON-FINANCIAL LISTED FIRMS OF PAKISTAN

2021 ◽  
Vol 9 (3) ◽  
pp. 517-530
Author(s):  
Tehmina Afzal ◽  
Atif Atique Siddiqui ◽  
Shiraz Khan ◽  
Muhammad Kamran Khan ◽  
Nader Huseen
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Firm Size ◽  
Dividend Policy ◽  
Audit Quality ◽  
Negative Impact ◽  
Earnings Quality ◽  
Earning Quality ◽  
The Impact

Purpose of the study: This research empirically examined the impact of the dividend policy and corporate governance attributes (board size, board meetings, audit quality, nomination committee, board independence, remuneration committee, and CEO duality) on earnings quality (EQ) of the firms in Pakistan. Methodology: The study used secondary data of 148 non-financial listed companies of the Pakistan Stock Exchange (PSX) with 1450 firm-year observations over 10 years from 2010 to 2019. Earning quality was assessed by the earnings management, while the values of the discretionary accruals were used to measure earnings management by employing the Modified jones model (1995). Panel regression analysis examined the impact of independent variables (dividend policy & characteristics of CG) on the dependent variable (EQ). Main Findings: Results revealed that the dividend policy showed no significant impact on earnings quality. Also, the results indicated that the audit quality and remuneration committee have a significant negative impact on earning management and a positive impact on earning quality. However, the results illustrate that the large board size, board meetings, CEO duality, firm size, and leverage have a positive influence on earnings management and a negative impact on earnings quality. Overall the study found that the corporate governance characteristics, firm size, and leverage influence the earnings quality of the firms in Pakistan. Applications of this study: The empirical results of the study will help to improve the understanding of dividend policy & corporate governance attributes in relationship with the EQ. Second, as dividend is considered one of the most important factors influencing investment decisions, so this endeavour will clarify to the investors and regulators that whether dividend will predict the quality of earnings in Pakistani firms. Novelty/Originality of this study: This study extends the literature of earnings quality that is very thin in Pakistan.

scholarly journals Heterogeneity in earnings quality between different classes of companies after IFRS adoption: evidence from Brazil

2017 ◽  
Vol 28 (73) ◽  
pp. 113-131
Author(s):  
Roberto Black ◽  
Sílvio Hiroshi Nakao
Keyword(s):  
Earnings Management ◽  
Financial Reporting ◽  
Value Relevance ◽  
Earnings Quality ◽  
Economic Incentives ◽  
Net Income ◽  
Accounting Earnings ◽  
Ifrs Adoption ◽  
Before And After

ABSTRACT This paper aims to investigate the existence of heterogeneity in earnings quality between different classes of companies after the adoption of the International Financial Reporting Standards (IFRS). IFRS adoption is generally associated with an increase in the quality of financial statements. However, companies within the same country are likely to have different economic incentives regarding the disclosure of information. Thus, treating companies equally, without considering the related economic incentives, could contaminate earnings quality investigations. The case of Brazil is analyzed, which is a country classified as code-law, in which tax laws determined accounting practice and in which IFRS adoption is mandatory. First, Brazilian companies listed on the São Paulo Stock, Commodities, and Futures Exchange (BM&FBOVESPA) were separated into two classes: companies issuing American Depositary Receipts (ADRs) before IFRS adoption and companies that did not issue ADRs until the adoption of IFRS. Then, this second class of companies was grouped, using cluster analysis, into two different subclasses according to economic incentives. Based on the groups identified, the quality of accounting earnings is tested for each class of the companies before and after IFRS adoption. This paper uses timely recognition of economic events, value relevance of net income, and earnings management as proxies for the quality of accounting earnings. The results indicate that a particular class of companies began showing conditional conservatism, value relevance of net income, and lower earnings management after IFRS adoption. On the other hand, these results were not found for the two other classes of companies.

scholarly journals An Examination of the Effects of Change in Committee Chair on Audit Quality

2017 ◽  
Vol 6 (4) ◽  
pp. 52
Author(s):  
Izhar Haq ◽  
Teresa Lang ◽  
Hongkang Xu
Keyword(s):  
Audit Committee ◽  
Audit Quality ◽  
Financial Statements ◽  
Discretionary Accruals ◽  
Committee Chair ◽  
The Absolute ◽  
Predicted Values ◽  
The Relationship ◽  
A Company

This study uses GMI Ratings directorship data from 2008 to 2013 along with the associated financial data to examine the relationship between audit committee chair change with the absolute discretionary accruals in the financial statements of the reporting companies.  Our results suggest that audit committee chair change is positively associated with the absolute discretionary accruals.  Specifically, absolute discretionary accruals are significantly higher when there is a change in the audit committee chair.  These results are consistent with prior research that deviations from the predicted values of accruals is an indicator of “poor” audit quality.  An additional finding of this paper is that a person younger than 60 is more likely to be a new audit committee chair when there is a change and therefore will have less experience and contacts than the outgoing chair. An important implication of these results is that audit committee chair change can have a significant impact on the quality of the financial statements of a company as well as on the audit quality.

scholarly journals Goodwill And Goodwill Write-Downs: Their Effects On Earnings Quality For 2008 And 2009

2011 ◽  
Vol 7 (11) ◽  
Author(s):  
Don E. Giacomino ◽  
Michael D. Akers
Keyword(s):  
Earnings Management ◽  
Earnings Quality ◽  
Pension Plan ◽  
Expected Returns ◽  
Balance Sheets ◽  
Big Bath

This paper examines goodwill on corporate balance sheets.  Specifically, the paper measures the extent to which goodwill exists on corporate balance sheets and the degree of goodwill write-downs that have occurred recently.   We report on our study and a study by Intangible Business, which show that many firms carry substantial amounts of goodwill on their 2008 balance sheets.  Thus, because of the recent downturn in the economy and the markets, the potential for big bath earnings management for 2008 and 2009 exists.   In addition, because of reductions in expected returns on pension plan assets, many firms are likely to record much higher pension expenses.   We expect that the combination of goodwill impairments and increased pension expense will have significant effects on both the amount and the quality of earnings for 2008 and, possibly, 2009.

scholarly journals Pengaruh Kompetensi dan Kegiatan Komite Audit terhadap Kualitas Audit

2019 ◽  
Vol 14 (1) ◽  
pp. 25-36
Author(s):  
Dayu Swispa Pamantau
Keyword(s):  
Regression Models ◽  
Audit Committee ◽  
Audit Quality ◽  
Analysis Method ◽  
Linear Regression Models ◽  
High Competence ◽  
The City ◽  
A Company

The accuracy of the determination of policies within a company is determined by the quality of the resulting audit by the auditor. Audit quality will be higher when the auditor assigned to have high competence in the field of audit, in addition to the quality of the audit will be better if the activities of the audit committee to provide oversight of internal party activities. Therefore, this study purpose to determine the effect of the competence and activities of the audit committee on audit quality. The study was conducted at the KAP region of the city of Padang and Pekanbaru. The sample used was 43 respondents. The analysis method used is to use multiple linear regression models. Based on the results of hypothesis testing results found that the competence and activities of the audit committee have a significant effect on audit quality auditors working in KAP of Padang and Pekanbaru city.

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