Is there a trade-off between accrual-based and real earnings management activities in the presence of (fe) male auditors?
AffiliationUniversity of Coventry
University of Southampton
University of Derby
Brunel University London
MetadataShow full item record
AbstractPrior 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).
CitationOwusu, A., Mansour Z. A., Omoteso, K., Elamer, A., A. (2020). 'Is there a trade-off between accrual-based and real earnings management activities in the presence of (fe) male auditors?' Journal of Business Ethics, pp. 1-40.
JournalJournal of Business Ethics
The following license files are associated with this item:
- Creative Commons