... investigate the relation between PCAOB inspection oversight and real earnings management, a potentially value-destroying activity. We exploit the staggered timing of foreign governments’ allowance of PCAOB inspections in a generalized difference-in-differences design and find that companies engage in greater...

...Xianjie He; Jeffrey Pittman; Sarah E. Stein; Huifang Yin SUMMARY We examine whether firms undertaking an initial public offering (IPO) exhibit less earnings management when individual investment bankers have prior experience in public accounting. Although auditors are primarily responsible...

... examination of the effect of the AFE residing in the AC chair on the monitoring of financial reporting quality and the audit process. Based on a sample of over 13,840 observations from U.S. public companies, we find that AFE of the AC chair is associated with lower levels of earnings management and enhanced...

... are interested in the factors that affect auditor independence and financial reporting quality. Data Availability: The data used are publicly available from the sources cited in the text. auditor independence earnings management discretionary accruals management discretion mandatory auditor rotation...

... competition earnings management audit risk business risk audit fees Competition in the product market is increasing due to increased globalization ( Gaspar and Massa 2006 ). Prior studies have examined the effect of this increase in competition from different perspectives ( Ali, Klasa, and Yeung...

... period for the new audit partner. Both Bedard and Johnstone (2010) and Daugherty et al. (2012) urge future research to examine the consequences of audit partner rotation once data on partner identity are available. audit quality earnings management financial reporting quality discretionary...

... independence in the pre-SOX period. Using discretionary accruals to proxy for earnings management, we find a positive association between discretionary accruals in the pre-SOX era and the subsequent reduction in NAS, but this was confined to income-decreasing accruals. Further, the association between downward...