Can Enhanced Audit Quality Reduce Higher Real Earnings Management — Evidence from China

DOI

10.2991/iceeim-14.2014.9How to use a DOI?

Keywords

real earnings management, incentives, audit quality

Abstract

In this paper we use data from listed companies in China to examine whether the firms with incentives to manage earnings upwards resort to real earnings management when facing higher audit quality. Based on our OSL model, we suggest that higher audit quality increases the level of real earnings management in the companies with upward incentives to management earnings. And the potential reason is the constraints on accrual earnings management at higher audit quality. Our results are helpful to regulate information disclosure.

Copyright

© 2014, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Danyu Zhang
PY  - 2014/04
DA  - 2014/04
TI  - Can Enhanced Audit Quality Reduce Higher Real Earnings Management — Evidence from China
BT  - Proceedings of the 2014 International Conference on e-Education, e-Business and Information Management
PB  - Atlantis Press
SP  - 30
EP  - 32
SN  - 1951-6851
UR  - https://doi.org/10.2991/iceeim-14.2014.9
DO  - 10.2991/iceeim-14.2014.9
ID  - Zhang2014/04
ER  -