• Medientyp: E-Artikel
  • Titel: Big 4 auditing companies, earnings manipulation and earnings conservatism: evidence from an emerging market
  • Beteiligte: Mokoaleli-Mokoteli, Thabang; Emmanuel Iatridis, George
  • Erschienen: LLC CPC Business Perspectives, 2017
  • Erschienen in: Investment Management and Financial Innovations, 14 (2017) 1, Seite 35-45
  • Sprache: Nicht zu entscheiden
  • DOI: 10.21511/imfi.14(1).2017.04
  • ISSN: 1810-4967; 1812-9358
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  • Beschreibung: This study focuses on South African listed companies and investigates the relation between Big 4 auditing companies, earnings management and earnings conservatism. It shows that companies audited by a Big 4 auditor leads to a more timely recognition of large losses and to lower levels of earnings manipulation and higher conditional conservatism. The findings report that the conditional form of conservatism is negatively related to unconditional conservatism. Higher conservatism is also reported for firms with high leverage and those that convey bad news. The opposite has been found for firms with high growth. The findings, in general support the notion that the new Companies’ Act in South Africa and the King III are effective corporate governance tools and the observed cases of corporate failure may be due to other factors, including management hubris.
  • Zugangsstatus: Freier Zugang