Relationship between Audit Quality and Earnings Management to Meet Earnings Thresholds

Different researches employ different empirical methodsto assess earnings management. One of the methods concentrates on profit distribution that refers to acts to meet or beat certain threshold. Promoting audit quality may cause improvement in quality of information, and in particular, in quality o...

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Autores principales:	Shokrollah Khajavi, Mahdi Ebrahimi Maimand
Formato:	article
Lenguaje:	FA
Publicado:	Shahid Bahonar University of Kerman 2015
Materias:	audit quality earnings management earnings thresholds Accounting. Bookkeeping HF5601-5689
Acceso en línea:	https://doaj.org/article/a764883f9dde4f9cb16521a4dbeefadd
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spelling	oai:doaj.org-article:a764883f9dde4f9cb16521a4dbeefadd2021-11-04T19:48:49ZRelationship between Audit Quality and Earnings Management to Meet Earnings Thresholds2008-89142476-292X10.22103/jak.2015.1408https://doaj.org/article/a764883f9dde4f9cb16521a4dbeefadd2015-11-01T00:00:00Zhttps://jak.uk.ac.ir/article_1408_74afa1c3287dc3e622678dfbc46c4228.pdfhttps://doaj.org/toc/2008-8914https://doaj.org/toc/2476-292XDifferent researches employ different empirical methodsto assess earnings management. One of the methods concentrates on profit distribution that refers to acts to meet or beat certain threshold. Promoting audit quality may cause improvement in quality of information, and in particular, in quality of assessing earnings. This study examined the relationship between the probabilities of meeting or beating certain thresholds of earnings, including loss avoiding, earnings reduction avoiding and negative earnings surprise avoiding, and audit quality, including firm size, tenure, and quality control point. The study used information from 101 companies for the period of 2005 to 2011 to analyze the respected relationship. The results showed that there is a significant negative relationship between probabilities of the earning management to meet or beat past year earnings and the two audit quality variables of audit firm size and quality control point. However, there was not significant relationship betweenthe earning management for loss avoiding and negative earnings surprises avoiding and the audit quality.Shokrollah KhajaviMahdi Ebrahimi MaimandShahid Bahonar University of Kermanarticleaudit qualityearnings managementearnings thresholdsAccounting. BookkeepingHF5601-5689FAمجله دانش حسابداری, Vol 6, Iss 22, Pp 29-56 (2015)
institution	DOAJ
collection	DOAJ
language	FA
topic	audit quality earnings management earnings thresholds Accounting. Bookkeeping HF5601-5689
spellingShingle	audit quality earnings management earnings thresholds Accounting. Bookkeeping HF5601-5689 Shokrollah Khajavi Mahdi Ebrahimi Maimand Relationship between Audit Quality and Earnings Management to Meet Earnings Thresholds
description	Different researches employ different empirical methodsto assess earnings management. One of the methods concentrates on profit distribution that refers to acts to meet or beat certain threshold. Promoting audit quality may cause improvement in quality of information, and in particular, in quality of assessing earnings. This study examined the relationship between the probabilities of meeting or beating certain thresholds of earnings, including loss avoiding, earnings reduction avoiding and negative earnings surprise avoiding, and audit quality, including firm size, tenure, and quality control point. The study used information from 101 companies for the period of 2005 to 2011 to analyze the respected relationship. The results showed that there is a significant negative relationship between probabilities of the earning management to meet or beat past year earnings and the two audit quality variables of audit firm size and quality control point. However, there was not significant relationship betweenthe earning management for loss avoiding and negative earnings surprises avoiding and the audit quality.
format	article
author	Shokrollah Khajavi Mahdi Ebrahimi Maimand
author_facet	Shokrollah Khajavi Mahdi Ebrahimi Maimand
author_sort	Shokrollah Khajavi
title	Relationship between Audit Quality and Earnings Management to Meet Earnings Thresholds
title_short	Relationship between Audit Quality and Earnings Management to Meet Earnings Thresholds
title_full	Relationship between Audit Quality and Earnings Management to Meet Earnings Thresholds
title_fullStr	Relationship between Audit Quality and Earnings Management to Meet Earnings Thresholds
title_full_unstemmed	Relationship between Audit Quality and Earnings Management to Meet Earnings Thresholds
title_sort	relationship between audit quality and earnings management to meet earnings thresholds
publisher	Shahid Bahonar University of Kerman
publishDate	2015
url	https://doaj.org/article/a764883f9dde4f9cb16521a4dbeefadd
work_keys_str_mv	AT shokrollahkhajavi relationshipbetweenauditqualityandearningsmanagementtomeetearningsthresholds AT mahdiebrahimimaimand relationshipbetweenauditqualityandearningsmanagementtomeetearningsthresholds
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Relationship between Audit Quality and Earnings Management to Meet Earnings Thresholds

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