Earnings management and audit quality in Europe: Evidence from the private client segment market

European Accounting Review

Volumn 17, Issue 3, 2008, Pages 447-469

  Van Tendeloo, Brenda ^a   Vanstraelen, Ann ^a,b  

^a MAASTRICHT UNIVERSITY   (Netherlands)

^b UNIVERSITY OF ANTWERP   (Belgium)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 51249097793     PISSN: 09638180     EISSN: 14684497     Source Type: Journal    
DOI: 10.1080/09638180802016684     Document Type: Article

References (44)

1. Ang, J., Cole, R. and Lin, J. (2000) Agency costs and ownership structure. Journal of Finance, 55:1, pp. 81-106.
2. Ball, R. and Shivakumar, L. (2005) Earnings quality in UK private firms. Journal of Accounting and Economics, 39:1, pp. 83-128.
3. Beatty, A. and Harris, D. G. (1998) The effects of taxes, agency costs and information asymmetry on earnings management: A comparison of public and private firms. Review of Accounting Studies, 3:3, pp. 299-326.
4. Beatty, A. L., Ke, B. and Petroni, K. R. (2002) Earnings management to avoid earnings declines across publicly and privately held banks. The Accounting Review, 77:3, pp. 547-570.
5. Beatty, R. (1989) Auditor reputation and the pricing of initial public offerings. The Accounting Review, 64:4, pp. 693-709.
6. Beaver, W. H., McNichols, M. F. and Nelson, K. K. (2004) An alternative interpretation of the discontinuity in earnings distributions. Stanford University
7. Becker, C. L., DeFond, M. L., Jiambalvo, J. and Subramanyam, K. R. (1998) The effect of audit quality on earnings management. Contemporary Accounting Research, 15:1, pp. 1-24.
8. Broom, D. (2002) Mid-tier bites at Big Four's market. Accountancy, 130:1308, pp. 24-25.
9. Burgstahler, D. C., Hail, L. and Leuz, C. (2006) The importance of reporting incentives: Earnings management in European private and public firms. The Accounting Review, 81:5, pp. 983-1016.
10. Campbell, J. Y. (1996) Understanding risk and return. Journal of Political Economy, 104:2, pp. 298-345.
11. Chaney, P. K., Jeter, D. C. and Shivakumar, L. (2004) Self-selection of auditors and audit pricing in private firms. The Accounting Review, 79:1, pp. 51-73.
12. Comprix, J., Muller, K., III and Stanford, M. (2003) Economic consequences from mandatory adoption of IASB standards in the European Union. Arizona State University
13. Coppens, L. and Peek, E. (2005) An analysis of earnings management by European private firms. Journal of International Accounting, Auditing and Taxation, 14:1, pp. 1-17.
14. DeAngelo, L. (1981) Auditor size and audit quality. Journal of Accounting and Economics, 3:3, pp. 183-199.
15. Dechow, P. M., Sloan, R. G. and Sweeney, A. P. (1995) Detecting earnings management. The Accounting Review, 70:2, pp. 193-225.
16. Dechow, P. M., Richardson, S. A. and Tuna, I. (2003) Why are earnings kinky? An examination of the earnings management explanation. Review of Accounting Studies, 8:23, pp. 335-384.
17. DeFond, M. L. and Hung, M. (2004) Investor protection and corporate governance: Evidence from worldwide CEO turnover. Journal of Accounting Research, 42:2, pp. 269-312.
18. DeFond, M. L. and Jiambalvo, J. (1994) Debt covenant violation and manipulation of accruals. Journal of Accounting and Economics, 17:12, pp. 145-176.
19. Durtschi, C. and Easton, P. (2005) Earnings management? The shapes of the frequency distributions of earnings metrics are not evidence ipso facto. Journal of Accounting Research, 43:3, pp. 557-592.
20. Fama, E. and Jensen, M. C. (1983) Separation of ownership and control. Journal of Law and Economics, 26:2, pp. 301-325.
21. Fenn, G. W. (2000) Speed of issuance and the adequacy of disclosure in the 144A high-yield debt market. Journal of Financial Economics, 56:3, pp. 383-405.
22. Francis, J. and Wang, D. (2008) The joint effect of investor protection and Big 4 audits on earnings quality around the world. Contemporary Accounting Research, 25:1, pp. 1-39.
23. Francis, J. R., Maydew, E. L. and Sparks, H. C. (1999) The role of Big Six auditors in the credible reporting of accruals. Auditing: A Journal of Practice & Theory, 18:2, pp. 17-34.
24. Gore, P., Pope, P. F. and Singh, A. K. (2001) Non-audit services, auditor independence and earnings management. Lancaster University
25. Healy, P. M. and Wahlen, J. M. (1999) A review of the earnings management literature and its implications for standard setting. Accounting Horizons, 13:4, pp. 365-383.
26. Heckman, J. J. (1978) Dummy endogenous variables in a simultaneous equations system. Econometrica, 46:4, pp. 931-959.
27. Hung, M. (2001) Accounting standards and value relevance of financial statements: An international analysis. Journal of Accounting and Economics, 30:3, pp. 401-420.
28. La Porta, R., Lopez-de-Silanes, F. and Shleifer, A. (1998) Law and finance. Journal of Political Economy, 106:6, pp. 1113-1155.
29. La Porta, R., Lopez-de-Silanes, F. and Shleifer, A. (2006) What works in securities laws?. Journal of Finance, 61:1, pp. 1-32.
30. Lang, M., Ready, J. and Yetman, M. (2003) How representative are firms that are cross-listed in the United States? An analysis of accounting quality. Journal of Accounting Research, 41:2, pp. 363-386.
31. Lang, M., Ready, J. S. and Wilson, W. (2006) Earnings management and cross listing: Are reconciled earnings comparable to US earnings?. Journal of Accounting and Economics, 42:12, pp. 255-283.
32. Leuz, C., Nanda, D. and Wysocki, P. D. (2003) Earnings management and investor protection: An international comparison. Journal of Financial Economics, 69:3, pp. 505-528.
33. Maddala, G. S. (2001) Introduction to Econometrics, John Wiley, New York
34. Maijoor, S. and Vanstraelen, A. (2006) Earnings management: The effects of national audit environment, audit quality and international capital markets. Accounting and Business Research, 36:1, pp. 33-52.
35. McNichols, M. (2000) Research design issues in earnings management studies. Journal of Accounting and Public Policy, 19:45, pp. 313-345.
36. Meuwissen, R., Moers, F., Peek, E. and Vanstraelen, A. (2007) An evaluation of abnormal accruals models in an international context. Universiteit Maastricht
37. Oliveiras, E. and Puig, X. (2005) The changing relationship between tax and financial reporting and Spain. Accounting in Europe, 2, pp. 195-207.
38. Subramanyam, K. R. (1996) The pricing of discretionary accruals. Journal of Accounting and Economics, 22:1, pp. 249-281.
39. Vander Bauwhede, H. and Willekens, M. (2004) Evidence on (the lack of) audit-quality differentiation in the private client segment of the Belgian audit market. European Accounting Review, 13:3, pp. 501-522.
40. Vander Bauwhede, H., Willekens, M. and Gaeremynck, A. (2003) Audit quality, public ownership and firms' discretionary accruals management. International Journal of Accounting, 38:1, pp. 1-22.
41. Watts, R. L. and Zimmerman, J. L. (1990) Positive accounting theory: A ten year perspective. The Accounting Review, 65:1, pp. 131-156.
42. Wooldridge, J. M. (2003) Introductory Econometrics: A Modern Approach, South Western College Publishing, Cincinnati, OH
43. Wysocki, P. (2004) Discussion of ultimate ownership, income management and legal and extra-legal institutions. Journal of Accounting Research, 42:2, pp. 465-474.
44. Young, S. (1999) Systematic measurement error in the estimation of discretionary accruals: An evaluation of alternative modelling procedures. Journal of Business Finance and Accounting, 26:78, pp. 833-862.