Investigation the Relationship between Audit Firm Size and Cash-Based Earnings Management for the Companies Listed on Tehran Stock Exchange (TSE) (original) (raw)
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2013
This research is going to study the effect of auditing quality on earnings management in firms accepted in Tehran Stock Exchange. Three criteria of: audit firm size, industry specialization and auditor's tenure were used to measure auditing quality. Also Jones's adjusted model has been used to calculate earnings management. 73 companies during the time period between 2008 and 2010 were investigated. To test the hypotheses we used linear regression model and difference test and the effects of variables were investigated separately because the overall model test created some co-linearity problems. The findings of the present research show that the results of the annual data and the interim data have been the same and this shows that auditing firm size does not affect earnings management meaningfully but industry specialization and auditor's tenure have had a negative effect on earnings management. Also earnings management in firms audited by big auditors, industry speciali...
The effect of real earnings management on audit fees in listed companies in Tehran Stock Exchange
Management Science Letters, 2014
This paper presents an empirical investigation to study the effect of real earnings management on audit fees in selected firms from Tehran Stock Exchange. The study gathers the necessary information from selected stocks listed in Tehran Stock Exchange. The proposed study uses the information of 63 firms over a four-year period from 2009 to 2012, which leaves us to have 252 data. Using some regression study, The study has confirmed real earnings management influences positively on audit fees in general. In addition, while real earnings management through an increase in sales does not influence on audit fees, the survey has concluded that real earnings management through increase in production costs as well as decrease in discretionary expenditures influences positively on audit fees.
The Effect Of Audit Quality And Earnings Management On Firm Performance
Proceedings of the 1st International Conference on Applied Economics and Social Science (ICAESS 2019), 2019
This study aims to examine the effects of audit quality on earnings management, audit quality and earnings management impact on the performance of nonfinancial companies listed in Indonesia Stock Exchange (IDX) period 2010-2015. Audit quality is proxy by auditor size, audit tenure and audit fees. The earnings management of discretionary accruals used modified Jones models by Dechow (1995), firm performance is proxy by Tobins'Q. The analysis technique used is the data panel regression analysis with EVIEWS software. The results of the study found are: firstly, that audit quality has no effect on firm performance, quality audit but has no effect on earnings management and earnings management has no effect on firm performance.
Objective-The purpose of this research is to empirically examine how company characteristics, corporate governance and audit quality affect earnings management. Methodology/Technique-The population used for this research is manufacturing companies listed on the Indonesian Stock Exchange between 2013 and 2015. The sampling method used in this research is purposive sampling. 64 companies are examined, with 192 items of data being obtained. Findings-This research also uses statistical testing through a multiple regression. The results show that return on assets, financial leverage, free cash flow, and sales growth all have an influence on earnings management. Meanwhile, other variables such as managerial ownership, institutional ownership, board size, the presence of an audit committee, firm size, and audit quality have no significant effect on earnings management. Novelty-In this research, company characteristics are proxied with the return on assets, financial leverage, firm size, free cash flow, and sales growth, while corporate governance is proxied with managerial ownership, institutional ownership, board size, and the presence of an audit committee.
The Effect of Audit Quality on the Earnings Management Activities
2012
The main purpose of this study was to investigate the effect of audit quality, measured by average clients' size of auditing firm, on the earnings management activities, measured by the value of discretionary accruals. This study was done controlling two moderating variables, which are the client importance and auditor’s name. Simple and Multiple Regressions were used to study the effects of audit quality on earnings management, and ANOVA was used for comparing the effects of auditor's name on the relation between audit quality and earnings management. The findings of the study indicated that audit quality has a relatively weak negative influence on discretionary accruals, and this, in turn, has a relatively weak negative influence on the manipulations done by management. The moderating variable client importance has no significant effect on the relationship between audit quality and discretionary accruals. So auditor’s name is the moderating variable. The researchers recomm...
Global Journal of Economics and Business, 2021
This study aims to investigate empirically how the characteristics of the firm; the audit quality and the corporate governance impact the management of earnings. The population employed in this study is industrial firms listed on the Amman Stock Exchange between 2017 and 2019. The method of sampling employed in this study is purposive sampling. 39 firms are analyzed, with 117 items of data being achieved. Also, this study applies statistical testing via multiple regression. The findings show that sales growth, free cash flow, financial leverage, and return on assets all have an impact on earnings management. Meanwhile, other factors such as audit quality, firm size, audit committee, the board size, institutional ownership, and managerial ownership, have not to impact on earnings management.
Academic Journal of Accounting and Economic Researches, 2017
Accounting profession researchers and practitioners consider earnings as one of the most important criteria for evaluating the performance and determining the value of the company, and they are forced to evaluate the reported earnings by economic units. To assess the earning a concept called quality of earnings is used. This study seeks to investigate the impact of certain factors, including the audit characteristics (size of audit firm, switch of auditors and auditor opinion) on the quality of earnings through the variable of discretionary accruals. In addition, other factors such as control variables of operating leverage, profitability, firm size, and the operational risk were examined. Thus the sample data consisted of 130 participants were collected for a five year period (2008-2013) and using model explanation, three proposed hypotheses in this study were tested. Regression analysis was used to test the hypotheses. The results indicate a significant negative correlation between the size of audit institution and discretionary accruals. This means that there is a negative and significant relationship between the variable of the audit institution size and earnings quality. Also, there is a non-significant positive relationship between the variables of the type of auditor opinion and discretionary accruals. This indicates a non-significant positive relationship between the variables of the type of auditor opinion and earnings quality. Finally, there is a negative and non-significant correlation between the variable of the switch of audit and the index of discretionary accruals. This represents a negative and non-significant relationship between the switch of auditor and earnings quality variables.
The aim of current study is to investigate relationship between size of audit firm and earning management in quoted companies in Tehran Stock Exchange. Therefore, the main question is addressed as fallows: Is there any significant differences in the earning management between the audited companies by auditing organization and audited companies by other members of the society of chartered accountants in Iran? The period of the study was from 2005 to 2009. The main hypothesis of this research is that there is a significant difference between the earning management of audited companies by Auditing organization and audited companies by other members of society of chartered Accountants in Iran. The results show that there is no significant difference between discretionary accruals of audited companies by auditing organization and other members of society of chartered Accountants in Iran.
Research Journal of Finance and Accounting, 2015
In developed economies, the audit process is very important measure of capital and political stability. This is despite the fact that in developing countries likes Iran. The audited financial statements of the most important tools for ensuring the transparency of financial information, which is to increase the predictive power of accounting information, such as financial ratios earnings per share is.Therefore, the quality of accounting information quality increases and future returns of the grounding of the information obtained will be closer to reality. The measures related to earnings management may lead to the disclosure of financial information to be false, because it is not provided in accordance with the actual conditions. Audit process as a moderator variable reduction measures related to earnings management. This paper examines the relationship between audit quality and earnings management among firms listed in Tehran Stock Exchange paid.And towards that goal, all of the com...
Corporate Governance, Audit Quality, Firm Size and Leverage: Their Effect on Earnings Management
Technium Social Sciences Journal
The objectives of this research are to estimate and analyze the effect of corporate governance, audit quality, firm size, and leverage on earnings management, either partially or simultaneously. The research method used is panel data regression analysis. Purposive sampling approach was used, choosing six companies that consistently participated in the Corporate Governance Perception Index (CGPI) program from 2014 to 2019 and are listed on the Indonesia Stock Exchange. The results show that CGPI has a significant negative effect, audit quality has no significant effect, firm size has a significant negative effect, leverage has a significant positive effect on earnings management. CGPI, audit quality, firm size, and leverage simultaneously have a significant effect on earnings management with a coefficient of determination (R2) of 0.7936, indicating that all independent variables can explain variations in earnings management by 79.36%, while the remaining 20. 64% is explained by othe...