Relationship between auditors’ fees and earnings management
This study investigates the relationship between audit fees and earnings management in the Brazilian market. In response to the research question, we used a sample of 300 firms listed on the BM&FBovespa for which it was possible to identify the amount paid to the auditors, using data gathered fr...
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Fundação Getulio Vargas, Escola de Administração de Empresas de São Paulo
2017-03-01
|
| Series: | RAE: Revista de Administração de Empresas |
| Subjects: | |
| Online Access: | http://bibliotecadigital.fgv.br/ojs/index.php/rae/article/view/67402/65704 |
| _version_ | 1797759859969490944 |
|---|---|
| author | Antonio Lopo Martinez Arquimedes de Jesus Moraes |
| author_facet | Antonio Lopo Martinez Arquimedes de Jesus Moraes |
| author_sort | Antonio Lopo Martinez |
| collection | DOAJ |
| description | This study investigates the relationship between audit fees and earnings management in the Brazilian market. In response to the research question, we used a sample of 300 firms listed on the BM&FBovespa for which it was possible to identify the amount paid to the auditors, using data gathered from the Economatica® database and the website of the Brazilian Securities Commission (Comissão Brasileira de Valores Mobiliários [CVM]). We analyzed the regressions with the aim of supporting or refuting the hypothesis that audit firms that charge less for their service tend to be more relaxed regarding earnings management by their client companies. The results support this hypothesis. The main contribution of this study is the possibility of stating that more aggressive earnings management occurs predominantly among firms that pay less than expected for audit services. This study evidences the perception of risk by audit firms and how this is reflected in the audit fees charged. |
| first_indexed | 2024-03-12T18:50:33Z |
| format | Article |
| id | doaj.art-68aa6d57452840b4a56d25dda5b72f10 |
| institution | Directory Open Access Journal |
| issn | 0034-7590 2178-938X |
| language | English |
| last_indexed | 2024-03-12T18:50:33Z |
| publishDate | 2017-03-01 |
| publisher | Fundação Getulio Vargas, Escola de Administração de Empresas de São Paulo |
| record_format | Article |
| series | RAE: Revista de Administração de Empresas |
| spelling | doaj.art-68aa6d57452840b4a56d25dda5b72f102023-08-02T07:15:12ZengFundação Getulio Vargas, Escola de Administração de Empresas de São PauloRAE: Revista de Administração de Empresas0034-75902178-938X2017-03-01572148157Relationship between auditors’ fees and earnings managementAntonio Lopo Martinez0 Arquimedes de Jesus Moraes1Professor at Fundação Instituto Capixaba de Pesquisas em Contabilidade, Economia e Finanças – Vitoria – ES, BrazilProfessor at Universidade Vila Velha, Departamento de Graduação em Ciências Contábeis – Vila Velha – Espírito Santo, BrazilThis study investigates the relationship between audit fees and earnings management in the Brazilian market. In response to the research question, we used a sample of 300 firms listed on the BM&FBovespa for which it was possible to identify the amount paid to the auditors, using data gathered from the Economatica® database and the website of the Brazilian Securities Commission (Comissão Brasileira de Valores Mobiliários [CVM]). We analyzed the regressions with the aim of supporting or refuting the hypothesis that audit firms that charge less for their service tend to be more relaxed regarding earnings management by their client companies. The results support this hypothesis. The main contribution of this study is the possibility of stating that more aggressive earnings management occurs predominantly among firms that pay less than expected for audit services. This study evidences the perception of risk by audit firms and how this is reflected in the audit fees charged.http://bibliotecadigital.fgv.br/ojs/index.php/rae/article/view/67402/65704Auditorsaudit feesaudit qualityaudit servicesearnings management |
| spellingShingle | Antonio Lopo Martinez Arquimedes de Jesus Moraes Relationship between auditors’ fees and earnings management RAE: Revista de Administração de Empresas Auditors audit fees audit quality audit services earnings management |
| title | Relationship between auditors’ fees and earnings management |
| title_full | Relationship between auditors’ fees and earnings management |
| title_fullStr | Relationship between auditors’ fees and earnings management |
| title_full_unstemmed | Relationship between auditors’ fees and earnings management |
| title_short | Relationship between auditors’ fees and earnings management |
| title_sort | relationship between auditors fees and earnings management |
| topic | Auditors audit fees audit quality audit services earnings management |
| url | http://bibliotecadigital.fgv.br/ojs/index.php/rae/article/view/67402/65704 |
| work_keys_str_mv | AT antoniolopomartinez relationshipbetweenauditorsfeesandearningsmanagement AT arquimedesdejesusmoraes relationshipbetweenauditorsfeesandearningsmanagement |