EFFECT OF BANK MONITORING ON EARNINGS MANAGEMENT OF THE BORROWING FIRM: AN EMPIRICAL INVESTIGATION

2015 ◽  
Vol 38 (2) ◽  
pp. 219-254 ◽  
Author(s):  
Anand Jha ◽  
Siddharth Shankar ◽  
Arun Prakash
Keyword(s):  
Earnings Management ◽  
Empirical Investigation ◽  
Bank Monitoring

CEO Turnover and the Engagement Quality Reviewer’s Audit Effort

2021 ◽  
pp. 0148558X2110549
Author(s):  
Yoo Chan Kim ◽  
Jongkyum Kim ◽  
Inshik Seol
Keyword(s):  
Quality Control ◽  
Earnings Management ◽  
Review Process ◽  
Empirical Investigation ◽  
Financial Statements ◽  
Ceo Turnover ◽  
Detailed Data ◽  
Data Set ◽  
Audit Risk ◽  
Shed Light

Previous literature on the engagement quality (EQ) review argues that EQ reviewers should provide more efforts into the review process when fieldwork auditors’ judgments and conclusions on the financial statements are potentially biased. Little empirical study has been done, however, partly due to the confidentiality of the detailed data on EQ reviewers’ audit hours. The purpose of the article is to shed light on the existing literature by conducting an empirical investigation using a unique actual data set available in Korea. The results show that the EQ review hours are positively associated with CEO turnovers, a proxy for the audit risk, which supports the prediction of the theory on the EQ review. Additional analyses show that such results are stronger under (a) the upward earnings management and (b) the forced CEO turnover. The article extends the existing literature on the EQ review process and enhances the understanding of the engagement-level quality control in the volatile audit environment by providing empirical evidence to the analytic discussions on the EQ review.

scholarly journals The Effect Of SFAS 115 On Earnings Management In The Banking Industry

2011 ◽  
Vol 18 (4) ◽  
Author(s):  
Shilo Lifschutz
Keyword(s):  
Panel Data ◽  
Earnings Management ◽  
Empirical Investigation ◽  
Banking Industry ◽  
Banking System ◽  
Bank Managers

This paper presents an empirical investigation into the issue of earnings management in the Amer- ican banking system under SFAS 115. The study includes panel data on 88 bank holding compa- nies (BHCs) for the years 1997-2000 on a quarterly basis resulting in 1,408 observations. As hy- pothesized, it was found that the motivation of bank managers to engage in gains trading is nega- tively related to their earnings level before tax and securities net gains.

scholarly journals Accounting ethics – an empirical investigation of managing short-term earnings

2011 ◽  
Vol 13 (1) ◽  
pp. 98-111 ◽  
Author(s):  
Leonie Jooste
Keyword(s):  
Earnings Management ◽  
Management Practices ◽  
Empirical Investigation ◽  
Accounting Students ◽  
Accounting Ethics ◽  
Ethical Practice ◽  
Business Managers ◽  
Short Term ◽  
Sarbanes Oxley ◽  
Significant Difference

Short-term earnings are managed in most, if not all, companies. The management of short-term earnings is vulnerable to misinterpretation, manipulation or deliberate deception even if these misleading accounting practices are prohibited by accounting regulations. Hence, the problem with managing short-term earnings is that it becomes an ethical practice, regardless of who is or may be affected by the practice or the information that flows from it. As a result of the publicity received by Enron and WorldCom on financial failures and fraud, and the subsequent legislation, the Sarbanes-Oxley Act in 2002, students are expected to understand the morality issues of earnings-management practices. Therefore, the ethics of earnings-management practices affects the accounting educator. Accounting students and business managers were surveyed and the findings indicated that there is no significant difference between gender regarding the ethicality of twenty earning management practices. The results, however, show that there is a significant difference between the perceptions of business managers and students regarding the morality of earnings-management practices. However, no significant differences were found between genders.

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