Auditor tolerance of accrual-based and real earnings management in boardrooms of politically connected Nigerian firms
This study examines the accrual-based and real earnings management tolerance of auditors in boardrooms of politically connected companies using auditor reputation theory and auditor litigation risk as the theoretical framework. Using a sample of 89 Nigerian listed companies during the period from 20...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Penerbit Universiti Kebangsaan Malaysia
2017
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| Online Access: | http://journalarticle.ukm.my/11970/ http://journalarticle.ukm.my/11970/1/12624-62490-1-PB.pdf |
| _version_ | 1848812874439327744 |
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| author | Salau Abdul Malik, Ayoib Che Ahmad, |
| author_facet | Salau Abdul Malik, Ayoib Che Ahmad, |
| author_sort | Salau Abdul Malik, |
| building | UKM Institutional Repository |
| collection | Online Access |
| description | This study examines the accrual-based and real earnings management tolerance of auditors in boardrooms of politically connected companies using auditor reputation theory and auditor litigation risk as the theoretical framework. Using a sample of 89 Nigerian listed companies during the period from 2008 to 2013, the study finds that auditors tolerate more accrual earnings management and less real earnings management in companies that are politically connected. In addition, the study finds a complementary relationship between real earnings management (REM) and abnormal earnings management (ABD) in companies that are politically connected. The findings of this study have serious implications for regulators, particularly following the various corporate governance scandals that have affected the integrity of financial information. |
| first_indexed | 2025-11-15T00:09:14Z |
| format | Article |
| id | oai:generic.eprints.org:11970 |
| institution | Universiti Kebangasaan Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T00:09:14Z |
| publishDate | 2017 |
| publisher | Penerbit Universiti Kebangsaan Malaysia |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | oai:generic.eprints.org:119702018-07-31T09:17:51Z http://journalarticle.ukm.my/11970/ Auditor tolerance of accrual-based and real earnings management in boardrooms of politically connected Nigerian firms Salau Abdul Malik, Ayoib Che Ahmad, This study examines the accrual-based and real earnings management tolerance of auditors in boardrooms of politically connected companies using auditor reputation theory and auditor litigation risk as the theoretical framework. Using a sample of 89 Nigerian listed companies during the period from 2008 to 2013, the study finds that auditors tolerate more accrual earnings management and less real earnings management in companies that are politically connected. In addition, the study finds a complementary relationship between real earnings management (REM) and abnormal earnings management (ABD) in companies that are politically connected. The findings of this study have serious implications for regulators, particularly following the various corporate governance scandals that have affected the integrity of financial information. Penerbit Universiti Kebangsaan Malaysia 2017 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/11970/1/12624-62490-1-PB.pdf Salau Abdul Malik, and Ayoib Che Ahmad, (2017) Auditor tolerance of accrual-based and real earnings management in boardrooms of politically connected Nigerian firms. Asian Journal of Accounting and Governance, 8 . pp. 101-111. ISSN 2180-3838 http://ejournal.ukm.my/ajac/issue/view/1033 |
| spellingShingle | Salau Abdul Malik, Ayoib Che Ahmad, Auditor tolerance of accrual-based and real earnings management in boardrooms of politically connected Nigerian firms |
| title | Auditor tolerance of accrual-based and real earnings management in boardrooms of politically connected Nigerian firms |
| title_full | Auditor tolerance of accrual-based and real earnings management in boardrooms of politically connected Nigerian firms |
| title_fullStr | Auditor tolerance of accrual-based and real earnings management in boardrooms of politically connected Nigerian firms |
| title_full_unstemmed | Auditor tolerance of accrual-based and real earnings management in boardrooms of politically connected Nigerian firms |
| title_short | Auditor tolerance of accrual-based and real earnings management in boardrooms of politically connected Nigerian firms |
| title_sort | auditor tolerance of accrual-based and real earnings management in boardrooms of politically connected nigerian firms |
| url | http://journalarticle.ukm.my/11970/ http://journalarticle.ukm.my/11970/ http://journalarticle.ukm.my/11970/1/12624-62490-1-PB.pdf |