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School of Business and Management

Do the networks between auditors and their clients’ board members influence real earnings management decisions?

When: Wednesday, March 24, 2021, 1:00 PM - 2:00 PM
Where: Online, Zoom

This seminar is part of the Accounting and Accountability Research Group seminars, taking place on Wednesday 24th March, 1pm-2pm.

 

Do the networks between auditors and their clients’ board members influence real earnings management decisions?

This seminar is hosted by Dr Claudine Grisard, AARG

By Monomita Nandy and Dr Suman Lodh

Abstract: The aim of this paper is to identify if networks between auditors and board members of client companies can influence the choice of real earnings management in these firms. Using a sample of 7,408 firm-year observations from 26 European countries from 2011 to 2019, we find that the connection between auditors and board members of client firms motivates the clients to engage in real earnings management. Our findings, which contribute to the enhanced understanding of real earnings management, are of interest to regulators and policy makers.