While there are many alternative proxies for “earnings quality”, there is little evidence as to what auditors consider to be indicative of high earnings quality. To answer this, we examine the adjustments that auditors require companies to make to earnings during year-end audits. There are three findings. First, audit adjustments serve to increase earnings persistence, smoothness, and accrual q...

The paper examines the role of executive compensation in inducing management behavior that triggers private securities litigation. Incentive pay in the form of options is found to increase the probability of securities class action lawsuits, holding constant a wide range of other firm characteristics. In contrast, base pay levels and share ownership do not have a significant impact on lawsuit i...

Based on the samples of A-share non-financial listed companies in Shanghai and Shenzhen from 2013 to 2019, this paper studies impact implementation employee stock ownership plan earnings management, finds that is significantly positively correlated with company’s accrual management level. Further research shows has a higher effect upward than downward management. The above results show motivati...

The relationship between CEO compensation and earnings management has been studied by the researchers since Healy’s research in 1985. In its development, there are many conditions that can affect this relationship. One of is condition Covid-19 pandemic. This Co-vid-19 pandemic a significant role economic downturn, which turn, it could company’s profit target. Profits do not reach target may lea...

Using China’s stock market as the testing venue, this study examines how corporate transparency helps explain the sensitivity of stock prices to general investor sentiment. We find that firms with low corporate transparency, measured by a battery of proxies including state ownership, the prevalence of related party transactions, accrual-based earnings management, audit opinions, and the quality...

We examine cross-country differences in the valuation and time series characteristics of earnings to assess whether there have been systematic changes over time. Our results suggest that earnings multiples have become more similar, although systematic differences remain. Potential economic determinants (e.g., growth rates, interest rates, and returns) do not exhibit similar convergence and do n...

This study explores the influence of family ownership and board involvement on earnings management in German-listed firms. We extend existing research by applying a more precise measurement that offers new insights into family’s effect behaviour. Our models suggest degree families is significant driver management, factor disregarded so far literature. Furthermore, distinction between founding s...