Audit Partner Gender, Leadership and Ethics : The Case of Earnings Management
| Autor: | Fahim Javed, Haithem Nagati, Mehdi Nekhili |
|---|---|
| Přispěvatelé: | emlyon business school, business school, emlyon |
| Jazyk: | angličtina |
| Rok vydání: | 2021 |
| Předmět: |
Economics and Econometrics
Accrual Joint audit education Accounting Audit 0603 philosophy ethics and religion Discretionary accruals Arts and Humanities (miscellaneous) Negatively associated health services administration 0502 economics and business Business and International Management [SHS.ECO] Humanities and Social Sciences/Economics and Finance Comparative advantage health care economics and organizations Leadership style Ethics business.industry 05 social sciences 06 humanities and the arts Audit partner gender [SHS.ECO]Humanities and Social Sciences/Economics and Finance General Business Management and Accounting Earnings management Transformational leadership [SHS.GESTION]Humanities and Social Sciences/Business administration 060301 applied ethics Business Business ethics [SHS.GESTION] Humanities and Social Sciences/Business administration Law 050203 business & management |
| Zdroj: | Journal of Business Ethics Journal of Business Ethics, Springer Verlag, 2021 |
| ISSN: | 0167-4544 1573-0697 |
| Popis: | International audience; Our study examines whether gender-diverse engagement partners constrain unethical earnings management behavior in a French mandatory joint audit setting. The investigation of the joint audit setting, by raising concerns about audit team organization and management, provides new insights into how gender-diverse audit partners contribute to the effectiveness of audit decision-making, resulting in reduced earnings management. The need for effective collaboration and communication between joint auditors may foster a transformational leadership style on the part of audit engagement partners. In this regard, we argue that better interaction between male and female lead audit partners confers a comparative advantage on gender-diverse audit partners compared to all-male audit partners. In line with our expectation, our empirical results show that gender-diverse audit partners are negatively associated with discretionary accruals of client firms. Gender-diverse audit partners are also found to constrain earnings management irrespective of whether clients hire one or two brand-name audit firms. Finally, we find that the pervasiveness of earnings management declines when client firms switch from all-male audit partners to gender-diverse audit partners. Our findings underline the importance of considering audit partner gender by policy makers in contexts where joint audits are required or in countries that are considering introducing joint audits. |
| Databáze: | OpenAIRE |
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