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: | , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
UKM Press
2017
|
| Subjects: | |
| Online Access: | https://repo.uum.edu.my/id/eprint/23585/1/AJAG%208%202017%20101%20111.pdf |
| _version_ | 1803628565831352320 |
|---|---|
| author | Abdul Malik, Salau Che Ahmad, Ayoib |
| author_facet | Abdul Malik, Salau Che Ahmad, Ayoib |
| author_sort | Abdul Malik, Salau |
| collection | UUM |
| 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 | 2024-07-04T06:23:59Z |
| format | Article |
| id | uum-23585 |
| institution | Universiti Utara Malaysia |
| language | English |
| last_indexed | 2024-07-04T06:23:59Z |
| publishDate | 2017 |
| publisher | UKM Press |
| record_format | dspace |
| spelling | uum-235852018-03-15T01:30:31Z https://repo.uum.edu.my/id/eprint/23585/ Auditor Tolerance of Accrual-Based and Real Earnings Management in Boardrooms of Politically Connected Nigerian Firms Abdul Malik, Salau Che Ahmad, Ayoib HD28 Management. Industrial Management 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. UKM Press 2017 Article PeerReviewed application/pdf en https://repo.uum.edu.my/id/eprint/23585/1/AJAG%208%202017%20101%20111.pdf Abdul Malik, Salau and Che Ahmad, Ayoib (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 21803838 http://doi.org/10.17576/AJAG-2017-08-09 doi:10.17576/AJAG-2017-08-09 doi:10.17576/AJAG-2017-08-09 |
| spellingShingle | HD28 Management. Industrial Management Abdul Malik, Salau Che Ahmad, Ayoib 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 |
| topic | HD28 Management. Industrial Management |
| url | https://repo.uum.edu.my/id/eprint/23585/1/AJAG%208%202017%20101%20111.pdf |
| work_keys_str_mv | AT abdulmaliksalau auditortoleranceofaccrualbasedandrealearningsmanagementinboardroomsofpoliticallyconnectednigerianfirms AT cheahmadayoib auditortoleranceofaccrualbasedandrealearningsmanagementinboardroomsofpoliticallyconnectednigerianfirms |