Audit Quality and Earnings Management to Avoid Losses and Earnings Decreases. The French Case
Journal Title: International Journal of Academic Research in Accounting, Finance and Management Sciences - Year 2016, Vol 6, Issue 4
Abstract
Burgstahler and Dichev’s (1997) show that companies willingly manage their earnings with the aim of meeting or exceeding the two earnings targets: zero earnings and last period’s earnings. In this paper, we focus on the impact of audit quality on the distributions of earnings and distributions of earnings changes among a sample of SBF 250 listed firms from 2001 to 2007. The results obtained confirm prior findings in Burgstahler and Dichev of discontinuities around zero and prior year earnings in histograms of earnings. We also do not find evidence supportive that high-quality audits provide a constraint on earnings management to avoid losses and earnings decreases.
Authors and Affiliations
Anis Ben Amar, Mohamed Chabchoub
Keywords
Related Articles
- EP ID EP96336
- DOI 10.6007/IJARAFMS/v6-i4/2285
- Views 104
- Downloads 0
Improving SMTEs’ Business Performance through Strategic Use of Information Communication Technology. ICT and Tourism Challenges and Opportunities
Information communication technologies (ICTs) prevail in all functions of strategic and operational management. As information is the lifeblood of tourism, ICTs provide both opportunities and challenges for the industry....
Analysis of Factors that Impact Dividend Payout Ratio on Listed Companies at Jakarta Islamic Index
The Impact of Exchange Rate Volatility on Stock Index: Evidence from Pakistan Stock Exchange (PSX)
The exchange rate Volatility is considered to be the most important and persuasive variable that affects the performance of stock index. The stock market plays an imperative role in the growth and development of a countr...
The Sustainability Approach of Romanian Agriculture
Transition in Romania has been perceived in an original way by the structures of society, social and political factors, but mainly by the economic one. Romanian society has been deprived of the existence of market econom...
Analysis of All Inclusive System Applied by the Accommodation Businesses in Turkey in the Context of Target Costing
That the accommodation managements could sustain their existences operating in a competition in which the sale price of services they provide is ascertained show parallelism with controls of their costs. In this context,...