A large body of accounting research in the past has documented the existence of conservatism and timeliness of income recognition as distinct factors which affect the returns-earnings relation. However, earnings are not the only measure of financial performance that is affected by conservatism. The aim of this paper is to examine the impact of conservatism on accrual measures and drivers, in th...

In this paper, we identify instances in which the auditor-client relationship has been terminated (i.e., the auditor resigns or the client dismisses the auditor) but the auditor continues to complete a subsequent quarterly review. Using discretionary accruals and earnings benchmark tests to proxy for the extent of earnings management, we contrast earnings management behavior during these “lame ...

Studies on the characteristics of insolvent firms’ earnings management are critical, as ripple effects a firm’s opportunistic accounting and insolvency society can be widespread significant. This study divides dataset unlisted firms into four groups (large that have received external audits; small- medium-sized enterprises (SMEs) SMES did not receive private businesses audits) analyzes whether ...

Abstract The purpose of this paper is to examine the effect board directors’ related clauses such as independence, female director, CEO Duality and expertise director included in Code Corporate Governance 2017 (CCG-2017) on earnings management with pre- post-CCG-2017 analysis. This study has used sample 323 non-financial listed firms Pakistan Stock Exchange from 2015 2019. Data were manually co...

The debate on audit quality still continues due to different results and arguments tenure, firm reputation quality. This study provides empirical evidence the differentiation of by considering tenure reputation. Using data from IDX manufacturing companies in 2019 2020, researcher examines difference quality, measured discretionary accruals, terms also 247 that are analyzed using Mann-Whitney te...

Prior research has estimated piece-meal the determinants of audit fees, non-audit fees and abnormal accruals. Intuition, informal analysis, and a variety of theories suggest that audit fees, non-audit fees, and abnormal accruals are jointly determined. We address this endogeneity issue by modeling the confluence of audit fees, fees for non-audit services and abnormal accruals in a system of sim...

We extend Dechow and Dichev’s [2002] model of current accruals quality (CAQ) to consider total accruals quality (TAQ). While the two measures are conceptually similar (both reflect the standard deviation of the residuals from the mapping of accruals into lead and lag cash flows), they differ in terms of the definitions of accruals and cash flows as well as the number of lead and lag cash flow t...