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The impact of audit quality on earnings management: Evidence from France

Selasi Awuye Isaac

Journal of Accounting and Taxation2022https://doi.org/10.5897/jat2021.0514article
AJG 1
Weight
0.73

What the paper says

This research investigates the relationship between financial reporting quality and audit quality within the context of French listed companies. The auditor brand name (Big4) is used as a proxy for audit quality and earnings management is ascertained through real and accruals earnings management estimation. Discretionary accruals are estimated using the Jones Model and the Modified Jones Model while real earnings management is estimated through the use of models proposed by Roychowdhury (2006). The results indicate that clients of Big4 audit firms record higher levels of accruals and real earnings management. This assertion could be attributed to the low level of auditor litigation risk in France. This study contributes to the literature by investigating the case for both discretionary accruals and real earnings management in a French environment that has peculiar auditing characteristics.   Key words: Audit quality, financial reporting quality, earnings management, discretionary accruals, real earnings management.

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https://doi.org/https://doi.org/10.5897/jat2021.0514

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@article{selasi2022,
  title        = {{The impact of audit quality on earnings management: Evidence from France}},
  author       = {Selasi Awuye Isaac},
  journal      = {Journal of Accounting and Taxation},
  year         = {2022},
  doi          = {https://doi.org/https://doi.org/10.5897/jat2021.0514},
}

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The impact of audit quality on earnings management: Evidence from France

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Evidence weight

0.73

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.95 × 0.4 = 0.38
M · momentum0.80 × 0.15 = 0.12
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.