Audit quality, investor protection and earnings management during the financial crisis of 2008: An international perspective

Persakis, Antonios; Iatridis, George Emmanuel

doi:10.1016/j.intfin.2015.12.006

Cited by 78 publications

(66 citation statements)

References 89 publications

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“…It implies that monitoring of big N auditor will be effective in high investor protection country. Persakis and Iatridis (2016) also support the finding of Haw et al (2011) that audit quality is affected by institutional factors, such as investor protection, legal enforcement. The higher audit quality, the higher earnings quality in country with high investor protection.…”

Section: The Auditor Qualitysupporting

confidence: 79%

“…However, the finding does not support Haw (2011) and Persakis et al (2016) that audit quality requires the investor protection mechanism for optimizing corporate governance implementation. For illustration that Haw (2011) and Persakis et al (2016) state that big N is only affected by institutional factors, such as investor protection, legal enforcement.…”

Section: Hypothesis Resultsmentioning

confidence: 73%

“…However, the finding of Haw et al (2011) and Persakis and Iatridis (2016) require the investor protection for optimizing the audit quality mechanism in corporate governance implementation. Haw et al (2011) states that big N only has important role in high investor protection country.…”

Section: The Auditor Qualitymentioning

confidence: 99%

“…For illustration that Haw (2011) and Persakis et al (2016) state that big N is only affected by institutional factors, such as investor protection, legal enforcement. The higher audit quality, the higher earnings quality in country with high investor protection.…”

Section: Conclusion and Recommendationmentioning

confidence: 99%

See 3 more Smart Citations

The Type I Versus Type II Agency Conflict on Earnings Management

Nurim

Sunardi

Raharti

2017

JDM

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This study aims to detect the background of earnings management behavior in which it shows the tendency of type I or II agency conflict. The high ownership concentration of firms in Indonesia leads type II agency conflict, but the good corporate governance formulation assumes conflict between management and shareholders. This study uses published data in IDX from [2009][2010][2011][2012][2013][2014]. TThe result reveals that reputation quality has negative significant correlation to earnings management behaviors, but corporate governance quality has insignificant correlation to earnings management, except percentage of independent commissioner board in moderate level. It has implication that management faces type II agency conflict. The majority may monitor management directly, so the finding reveals that independent commissioner board' s function is not optimum as part of corporate governance mechanism. According to the evidence, corporate governance formulation, especially in Indonesia, should be needed for reducing earnings management on type II tendency. Info Article

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Section: The Auditor Qualitysupporting

confidence: 79%

Section: Hypothesis Resultsmentioning

confidence: 73%

Section: The Auditor Qualitymentioning

confidence: 99%

Section: Conclusion and Recommendationmentioning

confidence: 99%

See 2 more Smart Citations

The Type I Versus Type II Agency Conflict on Earnings Management

Nurim

Sunardi

Raharti

2017

JDM

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“…According to La Porta et al, the difference have effect on the ownership structure and corporate governance implementation that has an effect to the earnings quality [2][3][4][5]. The other study reveals that investor protection correlates to auditor [6][7][8]. The next study also reveal that investor protection correlates to financial performance or management behavior [9][10][11][12][13][14][15][16][17].…”

Section: Introductionmentioning

confidence: 76%

The Effect of Local Value on Financial Performance in Digital Society Era

Nurim¹

2019

Proceedings of the 1st International Conference on Economics, Business, Entrepreneurship, and Finance (ICEBEF 2018)

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The digital era reduces the boundaries obstacles between societies. However, the local value still has role because the value encourages the management to behave ethically. The aim of this study is to provide empirical evidence about the important role of local wisdom value to encourage the optimal financial company performance. This study uses the local value, such as Islamic Value, that has recognized formally by Indonesia Government as Jakarta Islamic Index. Management considers the Islamic Sharia as local wisdom value of Indonesian to behave ethically. The result shows that local value has significant positive effect to financial performance. The result also supported by the finding that corporate governance score that has formulated globally is insignificant different between the members of Jakarta Islamic Index and Non Jakarta Islamic Index. The result implies that local wisdom can be considered on digital era as the part of corporate governance formulation because it captures the certain region characteristics. This study contributes to agency theory through the awareness of management on local value emerged from local wisdom value to align with shareholder's interest. This study also contributes to the implementation of corporate governance practice, because the local wisdom value can become the social enforcement for management to behave ethically.

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Studying the relationship between managerial ability and real earnings management in economic and financial crisis conditions

Oskouei

Sureshjani

2020

Int. J Fin Econ

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Managers with different abilities may make various decisions in economic and financial crisis conditions. Real earnings management, as an important issue, is in the centre of attention for many managers in a crisis condition. In this paper, the role of managerial ability in real earnings management is studied in conditions of economic and financial crisis. This study shows that the managers with higher ability take less usage of real earnings management. The results also indicate that managerial ability, economic and financial crisis have significant and negative effects on real earnings management. This negative effect of managerial ability on real earnings management increases in the conditions of economic crisis. Paying attention to the firms' managerial ability, especially in critical conditions, will lead to more accurate decisions by activist investors.

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Audit quality, investor protection and earnings management during the financial crisis of 2008: An international perspective

Cited by 78 publications

References 89 publications

The Type I Versus Type II Agency Conflict on Earnings Management

The Type I Versus Type II Agency Conflict on Earnings Management

The Effect of Local Value on Financial Performance in Digital Society Era

Studying the relationship between managerial ability and real earnings management in economic and financial crisis conditions

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