Auditor tolerance of accrual-based and real earnings management in boardrooms of politically connected Nigerian firms

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 20...

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Main Authors:	Salau Abdul Malik, Ayoib Che Ahmad
Format:	Article
Language:	English
Published:	Penerbit Universiti Kebangsaan Malaysia 2017
Online Access:	http://journalarticle.ukm.my/11970/ http://journalarticle.ukm.my/11970/ http://journalarticle.ukm.my/11970/1/12624-62490-1-PB.pdf

id	ukm-11970
recordtype	eprints
spelling	ukm-119702018-07-31T09:17:51Z http://journalarticle.ukm.my/11970/ Auditor tolerance of accrual-based and real earnings management in boardrooms of politically connected Nigerian firms Salau Abdul Malik, Ayoib Che Ahmad, 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. Penerbit Universiti Kebangsaan Malaysia 2017 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/11970/1/12624-62490-1-PB.pdf Salau Abdul Malik, and Ayoib Che Ahmad, (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 2180-3838 http://ejournal.ukm.my/ajac/issue/view/1033
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Kebangasaan Malaysia
building	UKM Institutional Repository
collection	Online Access
language	English
description	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.
format	Article
author	Salau Abdul Malik, Ayoib Che Ahmad,
spellingShingle	Salau Abdul Malik, Ayoib Che Ahmad, Auditor tolerance of accrual-based and real earnings management in boardrooms of politically connected Nigerian firms
author_facet	Salau Abdul Malik, Ayoib Che Ahmad,
author_sort	Salau Abdul Malik,
title	Auditor tolerance of accrual-based and real earnings management in boardrooms of politically connected Nigerian firms
title_short	Auditor tolerance of accrual-based and real earnings management in boardrooms of politically connected Nigerian firms
title_full	Auditor tolerance of accrual-based and real earnings management in boardrooms of politically connected Nigerian firms
title_fullStr	Auditor tolerance of accrual-based and real earnings management in boardrooms of politically connected Nigerian firms
title_full_unstemmed	Auditor tolerance of accrual-based and real earnings management in boardrooms of politically connected Nigerian firms
title_sort	auditor tolerance of accrual-based and real earnings management in boardrooms of politically connected nigerian firms
publisher	Penerbit Universiti Kebangsaan Malaysia
publishDate	2017
url	http://journalarticle.ukm.my/11970/ http://journalarticle.ukm.my/11970/ http://journalarticle.ukm.my/11970/1/12624-62490-1-PB.pdf
first_indexed	2023-09-18T20:01:33Z
last_indexed	2023-09-18T20:01:33Z
_version_	1777406882762194944

Auditor tolerance of accrual-based and real earnings management in boardrooms of politically connected Nigerian firms

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