USF St. Petersburg campus Faculty Publications
Audit quality, corporate governance, and earnings management: A meta-analysis.
Document Type
Article
Publication Date
2010
ISSN
1090-6738
Abstract
Earnings management is of great concern to corporate stakeholders. While numerous studies have investigated the effects of various corporate governance and audit quality variables on earnings management, empirical evidence is rather inconsistent. This meta-analysis identifies 12 significant relationships by integrating results from 48 prior studies. For corporate governance, the independence of the board of directors and its expertise have a negative relationship with earnings management. Similar negative relationships exist between earnings management and the audit committee’s independence, its size, expertise, and the number of meetings. The audit committee’s share ownership has a positive effect on earnings management. For audit quality, auditor tenure, auditor size, and specialization have a negative relationship with earnings management. Auditor independence, as measured by fee ratio and total fee, is also a deterrent to earnings management.
Publisher
Wiley-Blackwell
Recommended Citation
Lin, J.W. & Hwang, M.I. (2010). Audit quality, corporate governance, and earnings management: A meta-analysis. International Journal of Auditing, 14(1), 57-77. doi: 10.1111/j.1099-1123.2009.00403.x
Creative Commons License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.
Comments
Citation only. Full-text article is available through licensed access provided by the publisher. Members of the USF System may access the full-text of the article through the authenticated link provided.