The Relation between Auditors' Fees for Nonaudit Services and Earnings Management

Autor:	Richard M. Frankel, Karen K. Nelson, Marilyn F. Johnson
Rok vydání:	2002
Předmět:	Economics and Econometrics Earnings business.industry Accrual Market reaction Accounting Audit Negative association Auditor independence Earnings management business Proxy (statistics) health care economics and organizations Finance
Zdroj:	The Accounting Review. 77:71-105
ISSN:	1558-7967 0001-4826
DOI:	10.2308/accr.2002.77.s-1.71
Popis:	This paper examines whether auditor fees are associated with earnings management and the market reaction to the disclosure of auditor fees. Using data collected from proxy statements, we present evidence that nonaudit fees are positively associated with small earnings surprises and the magnitude of discretionary accruals, while audit fees are negatively associated with these earnings management indicators. We also find evidence of a negative association between nonaudit fees and share values on the date the fees were disclosed, although the effect is small in economic terms.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::051440cf09ab1ab0e14939dde6cc9e3c https://doi.org/10.2308/accr.2002.77.s-1.71 Zobrazit plný text záznamu