Earnings Management and Audit Quality in China
This paper examines the relationship between audit quality and earnings management in China, including both accruals earnings management and real earnings management. This paper is based on the assumption that if firms’ ability to manipulate accounting flexibility is restricted by higher audit quali...
| Main Author: | |
|---|---|
| Format: | Dissertation (University of Nottingham only) |
| Language: | English |
| Published: |
2017
|
| Online Access: | https://eprints.nottingham.ac.uk/46177/ |
| _version_ | 1848797273882886144 |
|---|---|
| author | ZHENG, JING |
| author_facet | ZHENG, JING |
| author_sort | ZHENG, JING |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | This paper examines the relationship between audit quality and earnings management in China, including both accruals earnings management and real earnings management. This paper is based on the assumption that if firms’ ability to manipulate accounting flexibility is restricted by higher audit quality, firms may resort to manipulations via real activities. Big N auditor and state-level auditor industry expertise are used as proxies for audit quality. The results show that Big N auditors are associated with lower abnormal accruals while higher levels of real earnings management. Similar, albeit weaker, results are found for state-level auditor industry expertise.
Keywords: accruals earnings management; real earnings management; audit quality; Big N; industry expertise; China. |
| first_indexed | 2025-11-14T20:01:16Z |
| format | Dissertation (University of Nottingham only) |
| id | nottingham-46177 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T20:01:16Z |
| publishDate | 2017 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-461772018-04-10T15:02:42Z https://eprints.nottingham.ac.uk/46177/ Earnings Management and Audit Quality in China ZHENG, JING This paper examines the relationship between audit quality and earnings management in China, including both accruals earnings management and real earnings management. This paper is based on the assumption that if firms’ ability to manipulate accounting flexibility is restricted by higher audit quality, firms may resort to manipulations via real activities. Big N auditor and state-level auditor industry expertise are used as proxies for audit quality. The results show that Big N auditors are associated with lower abnormal accruals while higher levels of real earnings management. Similar, albeit weaker, results are found for state-level auditor industry expertise. Keywords: accruals earnings management; real earnings management; audit quality; Big N; industry expertise; China. 2017-09-14 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/46177/1/final.pdf ZHENG, JING (2017) Earnings Management and Audit Quality in China. [Dissertation (University of Nottingham only)] |
| spellingShingle | ZHENG, JING Earnings Management and Audit Quality in China |
| title | Earnings Management and Audit Quality in China |
| title_full | Earnings Management and Audit Quality in China |
| title_fullStr | Earnings Management and Audit Quality in China |
| title_full_unstemmed | Earnings Management and Audit Quality in China |
| title_short | Earnings Management and Audit Quality in China |
| title_sort | earnings management and audit quality in china |
| url | https://eprints.nottingham.ac.uk/46177/ |