Is there a trade-off between accrual-based and real earnings management activities in the presence of (fe) male auditors?
Prior research suggests that the presence of high-quality auditors (i.e. proxied by audit firm characteristics) constrains accrual-based earnings management, but it inadvertently leads to higher real activities manipulation. We investigate whether such trade-off exists between accrual-based and real...
Authors: | ; ; ; |
---|---|
Format: | Electronic Article |
Language: | English |
Check availability: | HBZ Gateway |
Journals Online & Print: | |
Fernleihe: | Fernleihe für die Fachinformationsdienste |
Published: |
Springer
2022
|
In: |
Journal of business ethics
Year: 2022, Volume: 175, Issue: 4, Pages: 815-836 |
Further subjects: | B
Abnormal accruals
B Aufsatz in Zeitschrift B Auditor gender B Real activities |
Online Access: |
Volltext (lizenzpflichtig) Volltext (lizenzpflichtig) |
Summary: | Prior research suggests that the presence of high-quality auditors (i.e. proxied by audit firm characteristics) constrains accrual-based earnings management, but it inadvertently leads to higher real activities manipulation. We investigate whether such trade-off exists between accrual-based and real earnings management activities in the presence of female or male auditors. We use a sample of UK firms for the period 2009 to 2016 and find that firms audited by female auditors do not resort to a higher-level real activities manipulation when their ability to engage in accruals management is constrained. Overall, our results suggest that the benefits of hiring female auditors (i.e. less accrual-based earnings management) are overwhelmingly higher than the costs they might bring to the client firms (i.e. higher real activities manipulation). |
---|---|
ISSN: | 1573-0697 |
Contains: | Enthalten in: Journal of business ethics
|
Persistent identifiers: | DOI: 10.1007/s10551-020-04672-5 |