Reviewing Effect of Audit Quality and Ownership Structure on Earnings Management of Listed Firms in Tehran Stock Exchange

2015 ◽  
Vol 5 (10) ◽  
pp. 42
Author(s):  
Abolfazl Ghadiri Moghaddam ◽  
Mahdi Filsaraei ◽  
Ali Baradaran ◽  
Neda Boroumand ◽  
Nahid Rezaei Mokhtari ◽  
...  
Keyword(s):  
Earnings Management ◽  
Ownership Structure ◽  
Audit Quality ◽  
Stock Exchange ◽  
Listed Firms

scholarly journals The Effect of Audit Quality on Accruals Earnings Management in Nigerian Listed Firms

2019 ◽  
Vol 8 (4) ◽  
pp. 4894-4897
Keyword(s):  
Earnings Management ◽  
Financial Reporting ◽  
Audit Quality ◽  
Stock Exchange ◽  
Audit Fees ◽  
Annual Reports ◽  
Management Level ◽  
Listed Firms ◽  
The Public ◽  
Creative Accounting

Earnings manipulation studies are of utmost importance to both the shareholders and stakeholders because of its effect in investment and management decisions. The practices are directly affecting the quality of financial reporting and increase information asymmetry between the management and shareholders. Thus, Audit Quality is one of the tool academicians use in measuring the level of earning practices in the organizations. However, this study investigated the possible effect of audit quality towards the change of earnings management level among the Nigerian listed firms. The study used all the public listed firms in the main flow of the Nigerian Stock Exchange (NSE) as a population from the year 2012 until 2017. Sixty-three selected companies were selected as a sample based on the filtration criteria of the study. The financial data was obtained from the Thompson Reuters DataStream, and the corporate governance data was from the annual reports and accounts of the companies. Audit quality and accrual model was used to test the relationship between the study variable. The study applied multiple regression to test the model. It was revealed from the regression that audit quality is negatively significant with accrual earnings management. This finding is indicating that any increases in the unit of audit fees will decrease the earnings management of the selected firms. Thus, the finding is supporting agency theory and is contrary to the assumption of creative accounting theory. The result of this study will assist the relevant authorities in decision making and policy setting towards the best practices of the Nigerian listed firms.

The Impact of IFRS adoption and AQ upon Earnings Management in Saudi Stock Exchange (Tadawul): تأثير تطبيق المعايير الدولية لإعداد التقارير المالية وجودة المراجعة على إدارة الأرباح للشركات المدرجة في السوق المالية السعودية (تداول)

2020 ◽  
Vol 4 (15) ◽  
Author(s):  
Maha Nasser Allehaidan
Keyword(s):  
Earnings Management ◽  
Financial Reporting ◽  
Audit Quality ◽  
Stock Exchange ◽  
Negative Relationship ◽  
Listed Firms ◽  
Discretionary Accrual ◽  
Financial Reporting Standards ◽  
Ifrs Adoption ◽  
The Impact

The main purpose of this paper is to examine the impact of International Financial Reporting Standards (IFRS) adoption and Audit Quality (AQ) on Earnings Management (EM) practices in Saudi Arabia listed firms. EM is measured by the discretionary accrual using Healy (1985) and Kothari, Leone, and Wasley (2005) models. The research sample contains 16 Saudi listed firms during the period from 2014 to 2019. Statistical analysis including t-test and linear regression were used to test the research hypotheses. The investigation indicates that there is a negative relationship between IFRS adoption and EM practices, especially if it is combined with AQ, while it found a positive relationship between firms’ size and accrual EM, and no significant impact of AQ on firms’ debt ratio and EM practices. The importance of these results lies in providing clear evidence that the adoption of IFRS in developing countries has helped reduce earnings manipulation practices, which contributes to gaining confidence in Saudi firms and thus attracting many foreign investments.

scholarly journals Does The Presence Of Independent Directors Influence Accruals Management?

2011 ◽  
Vol 25 (6) ◽  
Author(s):  
Ramzi Benkraiem
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Ownership Structure ◽  
Boards Of Directors ◽  
Audit Quality ◽  
Stock Exchange ◽  
Independent Directors ◽  
Accruals Management ◽  
Big 4 ◽  
Corporate Governance Mechanisms

<p class="MsoNormal" style="text-align: justify; margin: 0in 38.3pt 0pt 0.5in;"><span style="font-size: 10pt; mso-ansi-language: EN-US;"><span style="font-family: Times New Roman;">Recent debates about the functioning of boards of directors have focused on the disciplinary role of independent directors (ID). Evaluating the effectiveness of this role is an interesting empirical question. This study seeks to examine the influence of these directors and two other corporate governance mechanisms<span style="color: black;">, namely the audit quality and the ownership structure, on earnings management as measured by working capital discretionary accruals (WCDAC). The analysis, conducted over a period of 4 years from 2001 to 2004, is based on a sample of 239 different French companies listed on the Paris stock exchange. </span>The findings show that the presence of ID can moderate the management of WCDAC. This role appears to be more effective <span style="color: black;">when these ID make up at least one third of the members of boards of directors, as recommended by the Vi&eacute;not 1999 report. The Big 4 auditors can also limit this discretionary adjustment. However, no statistically significant relationship was observed between dispersion vs. concentration of ownership structure and WCDAC. This study adds to the limited research into the relationship between corporate governance and earnings management in France. It also gives empirical evidence on the effectiveness of the Vi&eacute;not 1999 report&rsquo;s recommendations. Thus, it should be of interest to academics as well as regulators in preparing and amending corporate governance laws.</span></span></span></p>

scholarly journals PENGARUH STRUKTUR KEPEMILIKAN ASING DAN KUALITAS AUDIT TERHADAP NILAI PERUSAHAAN DENGAN MANAJEMEN LABA SEBAGAI MEDIASI

2021 ◽  
Vol 20 (1) ◽  
pp. 46-70
Author(s):  
Sri Hardyanti Budiman ◽  
Fransiskus Randa ◽  
Bernadeth Tongli
Keyword(s):  
Earnings Management ◽  
Ownership Structure ◽  
Indirect Effect ◽  
Firm Value ◽  
Audit Quality ◽  
Stock Exchange ◽  
Secondary Data ◽  
Foreign Ownership ◽  
Annual Reports ◽  
Insignificant Effect

This study aims to examine the effect of foreign ownership structure and audit quality on firm value with earnings management as mediation. The population used in this study are all companies listed on the Indonesia Stock Exchange (IDX) with the research period of 2013-2018. The method of determining the sample using non-random sampling i.e purposive sampling and uses secondary data in the form of annual reports and financial statements of the company. The analytical methods used are path analysis and simultaneous test (F test). The results showed that the foreign ownership structure has a negative and significant effect on earnings management, audit quality has a negative and insignificant effect on earnings management, foreign ownership structure has a positive and insignificant effect on firm value, audit quality has a positive and significant impact on earnings management. firm value, and earnings management have a positive and significant effect on firm value. This study also found that foreign ownership structure  has an indirect effect on firm value through earnings management and audit quality has an indirect effect on firm value through earnings management.

scholarly journals PENGARUH EARNINGS MANAGEMENT TERHADAP FUTURE PROFITABILITY TERKAIT DENGAN OWNERSHIP STRUCTURE, FIRM SIZE DAN CORPORATE GOVERNANCE PRACTICES

Media Ekonomi ◽  
2017 ◽  
Vol 20 (2) ◽  
pp. 55
Author(s):  
Ikhsan Yudha Asmara ◽  
Felizia Arni Rudiawarni
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Ownership Structure ◽  
Audit Committee ◽  
Audit Quality ◽  
Stock Exchange ◽  
Manufacturing Sector ◽  
The Future ◽  
Governance Practices ◽  
The Impact

This study aims to determine how the effect of earnings management on future profitability business entity engaged in the manufacturing sector listed on the Indonesia Stock Exchange, and how the effects of the ownership structure, company size, and the practice of corporate governance (proxied by the audit quality, independent board member and audit committee) regarding the impact of earnings management on the future profitability of manufacturing sector enterprises listed on the Stock Exchange. This study used a sample of manufacturing sector companies listed on the Indonesia Stock Exchange in the period 2008-2010. The samples used in this study were 262 observations. The sampling method used was probability sampling - judgment / purposive sampling. Independent variables used in this study are earnings management (proxied by the CFO, NDAC, and DAC), ownership structure (proxied by DFAM and INST), firmsize, and corporate governance practices (proxied by the AUDIT, BOD, and AUDCOM). The dependent variable in this study is the future profitability proxied by the variable "and CFOT earnt + 1 + 1. The results of this study were (1) earnings management proved to have a significant impact on the future profitability of manufacturing sector enterprises. The influence that appears different depending on the proxy used; (2) The ownership structure did not have an influence on the behavior of earnings management related to future profitability of manufacturing sector enterprises; (3) firmsize not affect earnings management behaviors related to future profitability of manufacturing sector enterprises; overall corporate governance practices are not effective in influencing the behavior of earnings management related to the future profitability of manufacturing sector enterprises. Keywords  :   future profitability, earnings management, ownership structure, corporate governance practice

scholarly journals Earnings Management Through Real Activities: The Role Of Audit Quality And Ownership Structure

2021 ◽  
Vol 12 (3) ◽  
pp. 5129-5141
Author(s):  
Istianing Sih
Keyword(s):  
Earnings Management ◽  
Ownership Structure ◽  
Production Cost ◽  
Audit Quality ◽  
Stock Exchange ◽  
Auditor Independence ◽  
Manufacturing Companies ◽  
The Public ◽  
Final Sample ◽  
Auditor Quality

This study aims to examine the effect of audit quality and ownership structure on earnings management through real activities. The audit quality tested is the size of the public auditor's office and auditor independence. The ownership structure that has been examined for its impact on management management is institutional ownership, managerial ownership, and foreign ownership. Earnings management through real activities is measured by three methods, namely abnormal cash flow from operation (CFO), abnormal discretionary expense, and abnormal production cost. The sample of this research is manufacturing companies listed on the Indonesia Stock Exchange from 2016 to 2018. With the purposive sampling method, the final sample is 175 company-years. The results showed that auditor quality and ownership structure had no effect on earnings management as measured by abnormal CFO. Meanwhile, abnormal production cost is not proven to be influenced by ownership structure but is negatively affected by audit quality as measured by Auditor Firm size. Ownership structure and audit quality are proven to have an effect on earnings management, which is measured by abnormal discretionary expense.

scholarly journals PENGARUH STRUKTUR KEPEMILIKAN, LEVERAGE, PROFITABILITAS DAN KEBIJAKAN DIVIDEN TERHADAP MANAJEMEN LABA DENGAN KUALITAS AUDIT SEBAGAI VARIABEL MODERASI

2017 ◽  
Vol 17 (1) ◽  
pp. 1
Author(s):  
Ayu Dwi Hasty ◽  
Vinola Herawaty
Keyword(s):  
Earnings Management ◽  
Ownership Structure ◽  
Dividend Policy ◽  
Audit Quality ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Managerial Ownership ◽  
Management Audit ◽  
The Relationship ◽  
Positive Effect

<p>This study aims to examine the effect of ownership structure, leverage, profitability and dividend policy on earnings management. In addition, this study wanted to test audit quality as a moderating variable on the relationship between ownership structure, leverage, profitability and dividend policy on earnings management. Independent variables used in this research are managerial ownership, leverage, profitability, and dividend policy. Dependent variable used in this research is earnings management. While the moderation variable used in this research is audit quality. The sample in this research is a manufacturing company listed on Indonesia Stock Exchange in the period 2013-2015. The total sample used was 99 for three consecutive years, taken through purposive sampling. The method of analysis of this research using multiple linear regression analysis. The results of this study indicate that managerial ownership negatively affect earnings management, leverage and profitability have a positive effect on earnings management, while dividend policy has no positive effect on earnings management for model 1. As for model 2 shows that managerial ownership has a significant negative effect on earnings management, leverage, profitability and dividend policy have a positive effect on earnings management. Audit quality is not able to moderate the relationship between managerial ownership, leverage, profitability, dividend policy on earnings management.</p><p>Keywords: managerial ownership, leverage, profitability, dividend policy, earnings management, audit quality</p><p align="center"> </p>

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.

Earnings management and ownership structure in emerging market

2017 ◽  
Vol 43 (10) ◽  
pp. 1117-1136 ◽  
Author(s):  
Naima Lassoued ◽  
Mouna Ben Rejeb Attia ◽  
Houda Sassi
Keyword(s):  
Emerging Markets ◽  
Earnings Management ◽  
Ownership Structure ◽  
Audit Quality ◽  
Emerging Market ◽  
Middle Eastern ◽  
Convincing Evidence ◽  
Loan Loss ◽  
African Countries ◽  
Content Type

Purpose The purpose of this paper is to investigate whether ownership structure affects earnings management in the banking industry of emerging markets. Design/methodology/approach The empirical study is conducted using a sample of 134 banks from 12 Middle Eastern and North African countries. Econometrically speaking, the study used a panel data regression analysis. Findings The authors found convincing evidence that banks with more concentrated ownership use discretionary loan loss provisions to manage their earnings. The authors also found that state and institutional owners encourage earnings management, while family owners reduce this practice. Practical implications The findings would be valuable for investors since they should take into account ownership structure in order to reach a better investment decision. Moreover, regulatory reforms in emerging markets should push for more transparency about ownership structure, high levels of supervision, and external audit quality. Originality/value This study presents international evidence on the prominent role of owners in earnings management in emerging markets with weak shareholder rights protection.

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