The effect of audit quality on downward real earnings management: U.K. evidence
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,...
| Main Author: | |
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| Format: | Dissertation (University of Nottingham only) |
| Language: | English |
| Published: |
2018
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| Online Access: | https://eprints.nottingham.ac.uk/54655/ |
| _version_ | 1848799061911535616 |
|---|---|
| author | Lyu, Yu |
| author_facet | Lyu, Yu |
| author_sort | Lyu, Yu |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | 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. |
| first_indexed | 2025-11-14T20:29:41Z |
| format | Dissertation (University of Nottingham only) |
| id | nottingham-54655 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T20:29:41Z |
| publishDate | 2018 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-546552022-11-21T15:20:41Z https://eprints.nottingham.ac.uk/54655/ The effect of audit quality on downward real earnings management: U.K. evidence Lyu, Yu 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. 2018-12-01 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/54655/1/dissertation-YU%20LYU-4290785.pdf Lyu, Yu (2018) The effect of audit quality on downward real earnings management: U.K. evidence. [Dissertation (University of Nottingham only)] |
| spellingShingle | Lyu, Yu The effect of audit quality on downward real earnings management: U.K. evidence |
| title | The effect of audit quality on downward real earnings management: U.K. evidence |
| title_full | The effect of audit quality on downward real earnings management: U.K. evidence |
| title_fullStr | The effect of audit quality on downward real earnings management: U.K. evidence |
| title_full_unstemmed | The effect of audit quality on downward real earnings management: U.K. evidence |
| title_short | The effect of audit quality on downward real earnings management: U.K. evidence |
| title_sort | effect of audit quality on downward real earnings management: u.k. evidence |
| url | https://eprints.nottingham.ac.uk/54655/ |