This study aims at examining the effect of audit committee with accounting and finance expertise on earnings quality manufacturing companies in Indonesia. The measurement uses absolute value discretionary accrual. three measurements accruals, Jones model (Jones, 1991), modified (Dechow, Sloan, & Sweeney, 1995), Kasznik models (Kasznik, 1999). Further, current refers to Badolato, Donelson, E...

This study aims to determine and analyze the effect of free cash flow on earnings management in property real estate service sector companies listed Indonesia Stock Exchange. Earnings is measured by discretionary accruals using Modified Jones Model. The population this 62 sectors Exchange for period 2017 2019. Based purposive sampling, a sample 20 was obtained. analytical method used simple pan...

Most of the current research on earnings management focuses on the detection of abnormal accruals. The purpose of this study is to detect manipulation of real activities to meet earnings targets. I analyze cash flow from operations (CFO), production costs and discretionary expenses. Using a simple model to determine the normal levels of these variables, I detect abnormally low CFO and abnormall...

This paper studies how a client's bankruptcy risk, together with its accounting quality and corporate governance, affect audit pricing. We use the unusual economic conditions of the 1998 Asian financial crisis as a stress test of the effect of these factors on audit pricing in Hong Kong. We find that audit fees are highly sensitive to a client firm's financial condition, corporate governance, a...

We study the impact of firms’ abnormal business operations on their future crash risk in stock prices. Computed based on real earnings management (REM) models, firms' deviation in real operations from industry norms (DRO) is shown to be positively associated with their future crash risk. This association is incremental to that between discretionary accruals (DA) and crash risk found by prior st...