The Moderating Effect of Audit Quality on the Links Between Stock Market Segmentations, Surplus Free Cash Flow, and Income-increasing Discretionary Accruals
| Autor: | Ahmad A. Toumeh, Sofri Yahya, Mohammed M. Yassin, Maha D. Ayoush |
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| Jazyk: | angličtina |
| Rok vydání: | 2021 |
| Předmět: | |
| Zdroj: | Australasian Accounting, Business and Finance Journal, Vol 15, Iss 4, Pp 153-174 (2021) |
| Druh dokumentu: | article |
| ISSN: | 1834-2000 1834-2019 |
| DOI: | 10.14453/aabfj.v15i4.9 |
| Popis: | The objective of this paper is to examine the impacts of stock market segmentations (SMS) and surplus free cash flow (SFCF) on income-increasing discretionary accruals. The study also provides the initial evidence regarding the influence of audit quality (AQ) as a moderating variable on those relationships. A sample of non-financial firms was taken from the list of Amman Stock Exchange over the period 2013-2019. Using Huber-White’s sandwich estimator for pooled OLS regression, the current research presents empirical evidence harmonious with the prediction in all hypotheses. Further, the findings document that a Big 4 auditor weakens the SMS-DAC and SFCF-DAC associations, which suggests that the role of Big 4 audit firms is effective in mitigating management’s opportunistic behaviour. However, the reported results provide beneficial information to investors, regulators, external auditors, policymakers, shareholders, and other countries with similar institutional environment. |
| Databáze: | Directory of Open Access Journals |
| Externí odkaz: |
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