This study investigates audit quality under joint and single regimes with a sample of large European firms. Both, the economic relevance these companies, fact that impact on should be stronger when audited company is blue-chip firm motivate study. If mandatory were positively associated quality, French firms, since 1966, present higher compared to their peers. The results do not indicate this c...

This paper hypothesizes that more active informed trading and intense information production help investors detect the low persistence of accruals, and consequently reduce the magnitude of accruals mis-pricing. Applying both the Mishkin (1983) and the hedge-portfolio tests to subsamples sorted on the basis of a two-way classification – accruals and one of the information production measures, we...

We examine the relation between auditor size and audit quality for a sample of U.K. private firms. Private firms prioritize tax considerations over reducing information asymmetry in their financial reporting. find that Big 4’s clients exhibit higher levels discretionary accruals lower precision accrual estimates than non-Big clients. Although 4 auditors are less tolerant income-increasing earni...

This paper aims to examine how corporate insider trading influences patterns of foreign and institutional investors especially in firms with high discretionary accruals low book-to-market ratios as proxies for information uncertainty. study uses methods such informed traders who are considered gather more precise before after tests affects traders. The results this provide evidence that is like...

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...

The accruals anomaly—the negative relationship between accounting accruals and subsequent stock returns—has been well documented in the academic and practitioner literatures for almost a decade. To the extent that this anomaly represents market inefficiency, one would expect sophisticated investors to learn about it and arbitrage the anomaly away. Yet, we show that the accruals anomaly still pe...

This study aims to determine the effect of earnings management on tax aggressiveness and corporate governance moderation in this relationship. Tax is measured using Effective Rate (ETR), while by calculating Discretionary Accruals (DACC) value. Corporate Governance includes institutional ownership, independent commissioners, audit committees. The sample research manufacturing companies listed I...

This study aims to provide empirical data about the impact of workload and auditor specialty, two independent characteristics, on audit quality as well affiliation with a reputable public accounting firm. In this study, absolute discretionary accruals using Modified Jones technique are used proxy for quality. 129 manufacturing businesses registered Indonesia Stock Exchange years 2017 through 20...

The study aims to know the influence size of company from informative profit with management and earnings opacity intervening variable. Size be measured natural logarithm total assets. Informative proxied response coefficient. Management discretionary accruals. Meanwhile, is income smoothing. Population in i.e. manufacturers listed on Indonesia Stock Exchange for 2016-2020 period. Retrieval tec...