scholarly journals EXTERNAL AUDIT(OR) QUALITY AND ACCRUAL EARNINGS MANAGEMENT: FURTHER EVIDENCE FROM NIGERIA

2020 ◽  
Vol 24 ◽  
Author(s):  
Kenny Adedapo Soyemi ◽  
Olubukonla Abosede Olufemi ◽  
Semiu Babatunde Adeyemie
Keyword(s):  
Earnings Management ◽  
Fixed Effects ◽  
Audit Quality ◽  
Control Variable ◽  
Sampling Technique ◽  
Auditor Independence ◽  
Least Square ◽  
Annual Reports ◽  
Ordinary Least Square ◽  
Financial Firms

Hinged on the quest for quality financial information, this study examined the influence of audit quality on restricting the incidence of accrual-based earnings management among 30 quoted non-financial firms in Nigeria, an emerging country which provides a rich institutional background and cultural setting different from developed nations. Secondary data were gathered from annual reports and audited financial statements for 11 years from 2008-2018. These firms were selected using stratified sampling technique. Thereafter, panel ordinary least square technique was used to estimate specified model for the study. While the descriptive statistics revealed the absence of accrualbased manipulation of earnings among quoted non-financial firms in Nigeria, the multivariate fixed effects ordinary least square depicted that audit quality variables adopted are mutually and statistically significant in explaining 49 percent changes in earnings management. Further, audit tenure and auditor independence exhibited positive and significant relationship, while total assets as the control variable, displayed a negative and significant influence on earnings management. Surprisingly, the size of audit firm appeared positive but statistically insignificant. Consequently, the relevant authorities and policy makers should not only sustain but improve on the current practice of audit engagement partner and/or auditor switch after certain years of continuous engagement to enhance their independence and reduce client-auditor engagement periods to avoid familiarity threat.

scholarly journals Pengaruh Leverage, UkuranPerusahan, Kualitas Audit dan Independensi Auditor Terhadap Manajemen Laba Pada Perusahaan Manufaktur Yang Terdaftar di BEI Periode 2015-2017.

2020 ◽  
Vol 7 (2) ◽  
pp. 15
Author(s):  
Rosmiati ◽  
Jihen Ginting
Keyword(s):  
Earnings Management ◽  
Audit Quality ◽  
Stock Exchange ◽  
Sampling Technique ◽  
Auditor Independence ◽  
Annual Reports ◽  
Company Size ◽  
Manufacturing Companies ◽  
Analysis Technique ◽  
Negative Effect

Abstrak : The problem in this study is how the influence of leverage, company size, audit quality and auditor independence on earnings management. The purpose of this study was to determine the effect of leverage, firm size, audit quality and auditor independence on earnings management. The population in this study are the entire companies of manufacturing companies listed on the Indonesia Stock Exchange in 2015-2017, which amounted to 143. However, from this population there are 128 annual reports that do not meet the research criteria and which are 15 annual reports in each year due to this study took 3 years of data, the number of samples was 45 annual reports. The analysis technique uses a purposive sampling technique with several criteria. The analysis technique in this study used multiple regression analysis with the help of the SPSS program. The results of this study indicate that Leverage, Company Size, Audit Quality and Auditor Independence simultaneously have no effect on earnings management. Partially Leverage has a negative effect on earnings management, Company Size does not affect earnings management, Audit Quality does not affect earnings management and Auditor Independence does not have an effect on earnings management. Keywords: Leverage, Company Size, Audit Quality, Auditor Independence, Earnings Management.

scholarly journals Audit Quality, Abnormal Audit Fee and Auditor Attributes

2017 ◽  
Vol 8 (3) ◽  
pp. 973-984
Author(s):  
Ogujiofor Magnus Nkemjika ◽  
Anichebe Alphonsus Sunday ◽  
Ozuomba Chidinma Nwamaka
Keyword(s):  
Audit Quality ◽  
Sampling Technique ◽  
Auditor Independence ◽  
Least Square ◽  
Ordinary Least Square ◽  
Auditor Tenure ◽  
Audit Fee ◽  
Independent Variable ◽  
Ordinary Least Square Regression ◽  
The Relationship

The study aimed at finding the relationship between audit quality, abnormal audit fee and auditor attributes. The study employed ordinary least square regression technique to analyze the relationship between the dependent and independent variable. Samples of fourteen banks were selected using judgmental sampling technique. The results reveal the existence of positive relationship between abnormal audit fee and audit quality at 5%. Second, the influence of auditor independence on quality appears to also be positive and significant at 5%. Third, the effect of Auditor tenure on audit quality appears to be positive and insignificant at 5%. The study recommended that apex bank should ensure that all factors that hamper auditor independence should be removed unduly long auditor tenure should be discouraged to avoid over familiarity of auditor with the client.

Determinants of audit fees in quoted financial and non-financial firms

2021 ◽  
Vol 3 (2) ◽  
pp. 30-40
Author(s):  
Wasiu Ajani Musa ◽  
Ramat Titilayo Salman ◽  
Ibrahim Olayiwola Amoo
Keyword(s):  
Financial Reporting ◽  
Audit Quality ◽  
Secondary Data ◽  
Sampling Technique ◽  
Audit Fees ◽  
Three Dimensions ◽  
Annual Reports ◽  
Lagrangian Multiplier ◽  
Financial Firms ◽  
Lm Test

Regulators have ensured the compulsory disclosure of audit fees in the financial statement to overcome abnormal fees and instill credibility in the financial report since audit pricing is contingent upon audit quality. However, discrepancies between audit fee dimensions are evidenced in the abnormal audit fees, resulting in accounting scandals. Hence, this study assessed the determinants of audit fees in quoted financial and non-financial firms by building a model underpinned by agency theory (Mitnick, 2006) and economic theory of product differentiation (Beath & Katsoulacos, 1991). Secondary data were utilized from companies’ annual reports between 2009 and 2018 using the purposive sampling technique. Furthermore, Breusch-Pagan Lagrangian multiplier (LM) test and the Hausman test indicated the consistency of the models. The static panel regression estimations showed that auditee size, risk, auditor size, reputation, engagement lag, and International Financial Reporting Standards (IFRS) implementation significantly affect audit fees in both sectors. This study concluded that the three dimensions largely determine audit fees. This study instructively proposed that assurance clients should devise an outline of guidelines and practices to guide activities in the sectors by monitoring the variables that impact audit fees

scholarly journals Information and Communications Technology and Inventory Management amongst Breweries in Nigeria

2018 ◽  
Vol 4 (1) ◽  
pp. 39
Author(s):  
Grace O. Akinola ◽  
Olusegun Timothy Odesola
Keyword(s):  
Inventory Management ◽  
Stock Exchange ◽  
Secondary Data ◽  
Sampling Technique ◽  
Least Square ◽  
Information And Communications Technology ◽  
Annual Reports ◽  
Communications Technology ◽  
Ordinary Least Square ◽  
The Right

This study examined the effect of ICT on inventory management amongst breweries in Nigeria. Secondary data were sourced for this study. The population for the study comprises all brewery companies quoted on the Nigerian Stock Exchange. Purposive sampling technique was used in selecting the three leading brewery companies in Nigeria, namely the Nigerian Breweries Plc; Guinness Nigeria Plc; and International Breweries Plc that represent 75% of the breweries quoted in the Nigerian Stock Exchange factsbook. Secondary data on ICT/ software costs, inventories, sales turnover/revenue, and assets were sourced from years 2006 to 2015 Annual Reports and Statements of Accounts of the three selected breweries and the Nigeria Stock Exchange facts book. The data collected were analyzed using descriptive statistics ( tables, mean and standard deviation) and inferential statistics (Ordinary Least Square (OLS) method). The results also showed that ICT usage had no significant positive relationship on inventory management (t = 0.021,  P > 0.01). The study concluded that ICT had no significant positive effect on inventory management in the Nigerian Brewery industry. It is recommended that brewery firms in Nigeria should deploy the right software for inventory management. The limitation of this research is what were used to measure the inventory management and Information and Communications Technology (ICT) as contrary results could be obtained if these variables are measured using other yardsticks.  The improvement of the respondent required to see the other problem and another kind of business. 

Dampak Kebijakan Moneter Pada Output Di Negara-Negara ASEAN Tahun 1980-2014

2017 ◽  
Vol 4 (1) ◽  
pp. 58-70
Author(s):  
Nur Widiastuti
Keyword(s):  
Monetary Policy ◽  
Interest Rate ◽  
Fixed Effects ◽  
Empirical Studies ◽  
Negative Relationship ◽  
Least Square ◽  
Fixed Effects Model ◽  
State Data ◽  
Ordinary Least Square ◽  
The Impact

The Impact of monetary Policy on Ouput is an ambiguous. The results of previous empirical studies indicate that the impact can be a positive or negative relationship. The purpose of this study is to investigate the impact of monetary policy on Output more detail. The variables to estimatate monetery poicy are used state and board interest rate andrate. This research is conducted by Ordinary Least Square or Instrumental Variabel, method for 5 countries ASEAN. The state data are estimated for the period of 1980 – 2014. Based on the results, it can be concluded that the impact of monetary policy on Output shown are varied.Keyword: Monetary Policy, Output, Panel Data, Fixed Effects Model

Pengaruh Hubungan Politik Terhadap Manajemen Laba Pada Perusahaan Sektor Jasa Dengan Variabel Kontrol Ukuran Perusahaan Dan Kualitas Audit

2018 ◽  
Vol 16 (2) ◽  
pp. 30
Author(s):  
Dwikky Darmawan ◽  
Weny Putri
Keyword(s):  
Earnings Management ◽  
Firm Size ◽  
Significant Influence ◽  
Service Sector ◽  
Audit Quality ◽  
Stock Exchange ◽  
Secondary Data ◽  
Annual Reports ◽  
Political Connection ◽  
Discretionary Accrual

The purpose of this study is to determine the effects of political connection toward the earnings management of service sector companies with control variables firm size and audit quality. Firm�s political connection measured by using dummy variable. Earnings management is proxied by discretionary accrual which is measured by using Modified Jones Model. The research data applied in this study are the secondary data which are taken from the annual reports of service sector companies that listed in Indonesian Stock Exchange of 2016-2017 periods. There are 330 observations fit as sample, which are taken by using purposive sampling method. Data are processed by applying the multiple linear regression test. The result show that the political connection had positive but not significant influence to earnings management. Firm size had negative but not significant influence to earnings management. Whereas the audit quality had a negative and significant influence to earnings management.

scholarly journals EFFECT OF CREDIT RATING ON CAPITAL STRUCTURE: A STUDY ON NON-FINANCIAL FIRMS IN PAKISTAN

2012 ◽  
Vol 12 (1) ◽  
Author(s):  
Keyword(s):  
Capital Structure ◽  
Credit Rating ◽  
Stock Exchange ◽  
Credit Ratings ◽  
Least Square ◽  
Statistical Tool ◽  
Ordinary Least Square ◽  
Optimal Capital Structure ◽  
Financial Firms ◽  
The Impact

Purpose- Aim of this study was to investigate whether the credit rating is an important determinant other than the firm's characteristic to obtain optimal capital structure focusing on the research hypothesis that the firms with higher credit along with the other factors (FTOA, ROA and Size) tend to have more debt in their capital structure of firms rated by P?CR? and Karachi Stock Exchange (KSE). Methodology/Sample- For this research, sample size of 48 observations (3 years data of 16 firms) was taken on the basis of convenience sampling. Results obtained by using Ordinary Least Square Model (OLS) as statistical tool to test the hypothesis Findings- Analysis clearly suggested that credit ratings do have an impact on firm's capital structure. It was concluded that firms with higher credit ratings along with other factors (FTOA, ROA and Size) do not tend to have more debt in their capital structure. Implications- Outcomes of this research might help investors, debtors and other stakeholders of the firms (rated by PACRA) to understand the impact of credit rating on firm's debt ratio and the overall dynamics and mechanism of capital structure.

scholarly journals CORPORATE GOVERNANCE DAN MANAJEMEN LABA RIIL PERBANKAN ISLAM INDONESIA DAN MALAYSIA

2018 ◽  
Vol 7 (4) ◽  
Author(s):  
M. Zubaedy Sy ◽  
Nuryati Nuryati ◽  
Surifah Surifah
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Audit Committee ◽  
Stock Exchange ◽  
Cash Flows ◽  
Profit Sharing ◽  
Least Square ◽  
Real Earnings Management ◽  
Annual Reports ◽  
Islamic Banks

 The main objective of this research is to create good corporate governance that is able to restrictopportunistic REM. The specific objectives of this study are 1) to provide evidence of difference inthe practices of CG and REM in Indonesian and Malaysian Islamic banks,and 2) to provide empirical evidence of the influence of CG on the REM of Indonesian and Malaysian Islamic banks.           The study was conducted on Indonesian and Malaysian Islamic banks from 2011 to 2016by using purposive samplingmethod. The research data is secondary data in the form of annual reports and financial reports originating from the Indonesian Banking Directory, the Indonesia Stock Exchange and the Malaysia Stock Exchange. The analysis method used to test the differences between CG and real earnings management is the Man Whitney test whilethe method used to test the effect of CG on the REM of Islamic Banks in Indonesia and Malaysia is the multiple regression analysiswithordinary least square.            The results show that the practices of corporate governance in Indonesia and Malaysia have their own strengths and weaknesses. CG mechanism of Indonesia and Malaysia shows lower level in some parts and higher level in other parts. Malaysia’s REM islower than Indonesia’sREM through operating cash flow, investment profit sharing, and discretionary costs. The experimental results show that CG generally does not affect real earnings management and only the independent audit committee who is able to restrictreal earnings management through operating cash flows.            Riset ini  menguji  hubungan antara corporate governance (CG) dan manajemen laba berdasar aktivitas riil  atau disebut real earnings management (REM) bank-bank Islam  di Indonesia dan Malaysia. Tujuan jangka panjang riset ini adalah terciptanya good corporate governace yang mampu membatasi REM oportunistik. Target khusus penelitian ini adalah 1) memberi bukti empiris perbedaan praktik CG dan REM bank Islam  Indonesia dan Malaysia. 2) memberi bukti empiris pengaruh CG terhadap REM bank Islam  Indonesia dan Malaysia.             Metode penelitian menggunakan metode ilmiah - kuantitatif, dengan membangun satu atau lebih hipotesis berdasarkan pada suatu struktur  atau kerangka teori dan kemudian menguji hipotesis-hipotesis tersebut secara empiris. Penelitian dilakukan pada bank Islam  Indonesia dan Malaysia periode waktu 2011 sampai 2016. Metode pengambilan sampel secara purposive sampling. Data penelitian merupakan data sekunder berupa  annual report dan laporan keuangan yang berasal dari Directory Perbankan Indonesia, Bursa Efek Indonesia  dan Bursa Efek Malaysia.  Teknik analisis untuk menguji perbedaan CG dan manajemen laba riil adalah uji beda Man Whitney, sedangkan untuk menguji pengaruh CG terhadap REM Bank Islam  Indonesia dan Malaysia menggunakan analisis regresi berganda ordinary least square.            Hasil menunjukkan bahwa praktik corporate governance Negara Indonesia dan Malaysia, masing masing memiliki kelebihan dan kelemahan. Mekanisme CG ada yang lebih rendah, maupun lebih tinggi antara Negara Indonesia dengan Malaysia. REM Malaysia lebih rendah signifikan dari pada Indonesia, baik melalui arus kas operasi, bagi hasil investasi, maupun biaya diskresioner. Hasil uji menunjukkan bahwa pada umumnya mekanisme CG tidak berpengaruh terhadap manajemen laba riil. Hanya Independensi komite audit yang mampu menekan manajemen laba riil melalui arus kas operasi.Keywords:Corporate governance, real earnings management, Islamic banking.

scholarly journals A Study on the Relationship between Earnings Quality and Capital Cost-Takes the China Listed Companies as a Sample

2021 ◽  
pp. 48-56
Author(s):  
Chih-Yi Hsiao ◽  
Hui-Hui Kuang ◽  
Hui-Ling Li ◽  
Jia-Li Liu
Keyword(s):  
Earnings Management ◽  
Earnings Quality ◽  
Least Square Method ◽  
Listed Companies ◽  
Capital Cost ◽  
Least Square ◽  
Accounting System ◽  
Ordinary Least Square ◽  
Research Findings ◽  
The Relationship

The phenomenon of false financial statements still exists. However, in addition to the risk of being punished, what kind of price do companies have to pay? In recent decades, with China's rapid progress in economic, the relevant accounting system and corporate governance standards are actively improving, and the earnings quality is improving. This paper takes China's listed companies from 2015 to 2019 as samples, and adopts quantile regression supplemented by ordinary least square method to explore the relationship between earnings quality and capital cost. The research findings show that the higher the earnings management, the higher the capital cost, especially for the company with low capital cost. Nevertheless, for the extremely company with high capital cost, earnings management can reduce the capital cost. The research results can provide the focus of regulators of listed companies and reference for the revision of relevant accounting system.

scholarly journals Analysis Of Effect Of Social And Economic Infrastructure Development To The Economy Of Coastal Areas In East Java Province

2017 ◽  
Vol 1 (1) ◽  
pp. 21-36
Author(s):  
Gigih Pratomo
Keyword(s):  
Coastal Area ◽  
Fixed Effects ◽  
Social Economic ◽  
Secondary Data ◽  
Sampling Technique ◽  
Coastal Areas ◽  
Least Square ◽  
Infrastructure Development ◽  
Fixed Effects Model ◽  
Fem Method

Developing countries are always faced with various economic development challenges (Todaro, 2000). Development of social economic Infrastructures has an important factor to influence the level of Gross Domestic Product. In coastal areas, infrastructure development is low and not optimal utilization. This study aims to determine the effects of development of social economic Infrastructures to the economy of coastal area in East Java Province during the perion 2008-2015. This study uses secondary data and samples taken by purposive random sampling technique that is the district/city of Banyuwangi, Jember, Probolinggo, Trenggalek, Sumenep, Sampang, Bangkalan, Lamongan, Gresik, Malang, dan kota Surabaya. This study uses panel data Fixed Effects Model (FEM) method with Generalized Least Square (GLS) cross section weight.The results of this study indicate that the variable of number school building, roads, and electricities significantly and positively effect to the economy of coastal area in East Java Province.

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