In this study, we examine the relationship between employee effort within firm and earnings management, using data on working hours discretionary accruals. With higher effort, find less management among U.S. firms. This result is stronger when are more predictable persists after control for endogeneity. We also smaller discontinuities with effort. Our domestic results remain same a global sampl...

Abstract In this study, we investigate the relationship between tax avoidance and earnings management in largest five European Union economies by using artificial neural network regressions. This methodology allows us to deal with nonlinearities detected data, which is principal contribution previous literature. We analyzed Compustat data for Germany, United Kingdom, France, Italy, Spain 2006–2...

Corporate social responsibility (CSR) involves multiple activities and is influenced by the cultural legal environment of country in which a firm located. This study examines role audit committees’ (AC) financial expertise relationship between CSR earnings quality Korean firms with high levels CSR. Using multivariate analysis, it investigates whether ACs that include members accounting expertis...

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...

This study aims to determine the effects of government size, fiscal capacity, distress, and legislature size on accrual manipulation in local financial reporting. The was conducted 23 governments Aceh with data analysis using multiple linear regressions. is extracted from audited reports for period 2016-2020. uses Modified Jones Model measure accruals. results show that distress have a negative...

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...

Recent studies have documented that various factors such as discretionary accounting accruals, underwriter reputation, venture capital backing, and firm size will affect the long-run performance of IPOs. However, it is not clear whether the return predictability of these attributes are the manifestation of one phenomenon, or independent results. In this study, we use univariate and multivariate...

The study is an effort to fiind out the impact of earnings management on dividend payout policy for two coutries that is Pakistan and China. A set of listed Companies in both of the countries have been investigated to analyze the relationship for the year 2003 to 2007 in Pakistan and 2001 to 2007 in China. Dividend policy has been measured by dividend payout. Whereas earnings management has bee...