4,626
Views
241
CrossRef citations to date
0
Altmetric
Original Articles

Earnings Management and Audit Quality in Europe: Evidence from the Private Client Segment Market

&
Pages 447-469 | Published online: 11 Oct 2011

References

  • Ang , J. , Cole , R. and Lin , J. 2000 . Agency costs and ownership structure . Journal of Finance , 55 ( 1 ) : 81 – 106 .
  • Ball , R. and Shivakumar , L. 2005 . Earnings quality in UK private firms . Journal of Accounting and Economics , 39 ( 1 ) : 83 – 128 .
  • Beatty , A. and Harris , D. G. 1998 . The effects of taxes, agency costs and information asymmetry on earnings management: a comparison of public and private firms . Review of Accounting Studies , 3 ( 3 ) : 299 – 326 .
  • Beatty , A. L. , Ke , B. and Petroni , K. R. 2002 . Earnings management to avoid earnings declines across publicly and privately held banks . The Accounting Review , 77 ( 3 ) : 547 – 570 .
  • Beatty , R. 1989 . Auditor reputation and the pricing of initial public offerings . The Accounting Review , 64 ( 4 ) : 693 – 709 .
  • Beaver , W. H. , McNichols , M. F. and Nelson , K. K. 2004 . “ An alternative interpretation of the discontinuity in earnings distributions ” . Stanford University . Working Paper
  • Becker , C. L. , DeFond , M. L. , Jiambalvo , J. and Subramanyam , K. R. 1998 . The effect of audit quality on earnings management . Contemporary Accounting Research , 15 ( 1 ) : 1 – 24 .
  • Broom , D. 2002 . Mid-tier bites at Big Four's market . Accountancy , 130 ( 1308 ) : 24 – 25 .
  • Burgstahler , D. C. , Hail , L. and Leuz , C. 2006 . The importance of reporting incentives: earnings management in European private and public firms . The Accounting Review , 81 ( 5 ) : 983 – 1016 .
  • Campbell , J. Y. 1996 . Understanding risk and return . Journal of Political Economy , 104 ( 2 ) : 298 – 345 .
  • Chaney , P. K. , Jeter , D. C. and Shivakumar , L. 2004 . Self-selection of auditors and audit pricing in private firms . The Accounting Review , 79 ( 1 ) : 51 – 73 .
  • Comprix , J. , Muller , K. , III and Stanford , M. 2003 . “ Economic consequences from mandatory adoption of IASB standards in the European Union ” . Arizona State University . Working Paper
  • Coppens , L. and Peek , E. 2005 . An analysis of earnings management by European private firms . Journal of International Accounting, Auditing and Taxation , 14 ( 1 ) : 1 – 17 .
  • DeAngelo , L. 1981 . Auditor size and audit quality . Journal of Accounting and Economics , 3 ( 3 ) : 183 – 199 .
  • Dechow , P. M. , Sloan , R. G. and Sweeney , A. P. 1995 . Detecting earnings management . The Accounting Review , 70 ( 2 ) : 193 – 225 .
  • Dechow , P. M. , Richardson , S. A. and Tuna , I. 2003 . Why are earnings kinky? An examination of the earnings management explanation . Review of Accounting Studies , 8 ( 2/3 ) : 335 – 384 .
  • DeFond , M. L. and Hung , M. 2004 . Investor protection and corporate governance: evidence from worldwide CEO turnover . Journal of Accounting Research , 42 ( 2 ) : 269 – 312 .
  • DeFond , M. L. and Jiambalvo , J. 1994 . Debt covenant violation and manipulation of accruals . Journal of Accounting and Economics , 17 ( 1/2 ) : 145 – 176 .
  • Durtschi , C. and Easton , P. 2005 . Earnings management? The shapes of the frequency distributions of earnings metrics are not evidence ipso facto . Journal of Accounting Research , 43 ( 3 ) : 557 – 592 .
  • Fama , E. and Jensen , M. C. 1983 . Separation of ownership and control . Journal of Law and Economics , 26 ( 2 ) : 301 – 325 .
  • Fenn , G. W. 2000 . Speed of issuance and the adequacy of disclosure in the 144A high-yield debt market . Journal of Financial Economics , 56 ( 3 ) : 383 – 405 .
  • Francis , J. and Wang , D. 2008 . The joint effect of investor protection and Big 4 audits on earnings quality around the world . Contemporary Accounting Research , 25 ( 1 ) : 1 – 39 .
  • Francis , J. R. , Maydew , E. L. and Sparks , H. C. 1999 . The role of Big Six auditors in the credible reporting of accruals . Auditing: A Journal of Practice & Theory , 18 ( 2 ) : 17 – 34 .
  • Gore , P. , Pope , P. F. and Singh , A. K. 2001 . “ Non-audit services, auditor independence and earnings management ” . Lancaster University . Working Paper
  • Healy , P. M. and Wahlen , J. M. 1999 . A review of the earnings management literature and its implications for standard setting . Accounting Horizons , 13 ( 4 ) : 365 – 383 .
  • Heckman , J. J. 1978 . Dummy endogenous variables in a simultaneous equations system . Econometrica , 46 ( 4 ) : 931 – 959 .
  • Hung , M. 2001 . Accounting standards and value relevance of financial statements: an international analysis . Journal of Accounting and Economics , 30 ( 3 ) : 401 – 420 .
  • La Porta , R. , Lopez-de-Silanes , F. and Shleifer , A. 1998 . Law and finance . Journal of Political Economy , 106 ( 6 ) : 1113 – 1155 .
  • La Porta , R. , Lopez-de-Silanes , F. and Shleifer , A. 2006 . What works in securities laws? . Journal of Finance , 61 ( 1 ) : 1 – 32 .
  • Lang , M. , Ready , J. and Yetman , M. 2003 . How representative are firms that are cross-listed in the United States? An analysis of accounting quality . Journal of Accounting Research , 41 ( 2 ) : 363 – 386 .
  • Lang , M. , Ready , J. S. and Wilson , W. 2006 . Earnings management and cross listing: are reconciled earnings comparable to US earnings? . Journal of Accounting and Economics , 42 ( 1/2 ) : 255 – 283 .
  • Leuz , C. , Nanda , D. and Wysocki , P. D. 2003 . Earnings management and investor protection: an international comparison . Journal of Financial Economics , 69 ( 3 ) : 505 – 528 .
  • Maddala , G. S. 2001 . Introduction to Econometrics , New York : John Wiley .
  • Maijoor , S. and Vanstraelen , A. 2006 . Earnings management: the effects of national audit environment, audit quality and international capital markets . Accounting and Business Research , 36 ( 1 ) : 33 – 52 .
  • McNichols , M. 2000 . Research design issues in earnings management studies . Journal of Accounting and Public Policy , 19 ( 4/5 ) : 313 – 345 .
  • Meuwissen , R. , Moers , F. , Peek , E. and Vanstraelen , A. 2007 . “ An evaluation of abnormal accruals models in an international context ” . Universiteit Maastricht . Working Paper
  • Oliveiras , E. and Puig , X. 2005 . The changing relationship between tax and financial reporting and Spain . Accounting in Europe , 2 : 195 – 207 .
  • Subramanyam , K. R. 1996 . The pricing of discretionary accruals . Journal of Accounting and Economics , 22 ( 1–3 ) : 249 – 281 .
  • Vander Bauwhede , H. and Willekens , M. 2004 . Evidence on (the lack of) audit-quality differentiation in the private client segment of the Belgian audit market . European Accounting Review , 13 ( 3 ) : 501 – 522 .
  • Vander Bauwhede , H. , Willekens , M. and Gaeremynck , A. 2003 . Audit quality, public ownership and firms' discretionary accruals management . International Journal of Accounting , 38 ( 1 ) : 1 – 22 .
  • Watts , R. L. and Zimmerman , J. L. 1990 . Positive accounting theory: a ten year perspective . The Accounting Review , 65 ( 1 ) : 131 – 156 .
  • Wooldridge , J. M. 2003 . Introductory Econometrics: A Modern Approach , 2 , Cincinnati , OH : South Western College Publishing .
  • Wysocki , P. 2004 . Discussion of ultimate ownership, income management and legal and extra-legal institutions . Journal of Accounting Research , 42 ( 2 ) : 465 – 474 .
  • Young , S. 1999 . Systematic measurement error in the estimation of discretionary accruals: an evaluation of alternative modelling procedures . Journal of Business Finance and Accounting , 26 ( 7/8 ) : 833 – 862 .

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.