The effect of audit quality on downward real earnings management: U.K. evidence

Lyu, Yu (2018) The effect of audit quality on downward real earnings management: U.K. evidence. [Dissertation (University of Nottingham only)]

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Abstract

I examine whether the enhancement of audit quality leads to the increasing use of downward real earnings management among firms with incentives to deflate earnings. For a sample of the UK listed firms that have at least one announcement of share repurchases, MBOs and option awards during 2009-2017, I find that higher audit fee is associated with more downward real earnings management. The effect of audit quality in three corporate events and earnings smoothing is tested separately. I find that firms seem to engage in more downward real earnings management prior to share repurchases and option awards, while MBOs and earnings smoothing have a counter effect of the audit quality on downward real earnings management.

Item Type: Dissertation (University of Nottingham only)
Depositing User: LYU, YU
Date Deposited: 21 Nov 2022 15:20
Last Modified: 21 Nov 2022 15:20
URI: https://eprints.nottingham.ac.uk/id/eprint/54655

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