Abdul Malik, Salau and Che Ahmad, Ayoib (2017) Auditor Tolerance of Accrual-Based and Real Earnings Management in Boardrooms of Politically Connected Nigerian Firms. Asian Journal of Accounting and Governance, 8. pp. 101-111. ISSN 21803838

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Abstract

This study examines the accrual-based and real earnings management tolerance of auditors in boardrooms of politically connected companies using auditor reputation theory and auditor litigation risk as the theoretical framework. Using a sample of 89 Nigerian listed companies during the period from 2008 to 2013, the study finds that auditors tolerate more accrual earnings management and less real earnings management in companies that are politically connected.In addition, the study finds a complementary relationship between real earnings management (REM) and abnormal earnings management (ABD) in companies that are politically connected.The findings of this study have serious implications for regulators, particularly following the various corporate governance scandals that have affected the integrity of financial information.

Item Type:	Article
Uncontrolled Keywords:	Nigeria; auditor; tolerance; accrual; real earnings management; politically-connected companies
Subjects:	H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Divisions:	Tunku Puteri Intan Safinaz School of Accountancy (TISSA)
Depositing User:	Mrs. Norazmilah Yaakub
Date Deposited:	15 Mar 2018 01:30
Last Modified:	15 Mar 2018 01:30
URI:	https://repo.uum.edu.my/id/eprint/23585

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