Title: Auditor's choice and earning management after Enron scandals: empirical approach in French context

Authors: Jamel Azibi; Mohamed Tahar Rajhi

Addresses: CNAM Paris, 18 Rue Legrand 94120 Fontenay sous-Bois, France; ISG Tunisia, 10 Essahada City 8160, Ghardimaou, Tunisia ' Management and Economic Faculty, Elmanar University, B.P. 248 El Manar II 2092 Tunis, Tunisia

Abstract: This paper investigates the relation between ownership structures, auditor's choice and earning management after Enron scandals in the French context. The sample is composed of 119 firms from Thomason financial data bases and annual reports over 2002-2005 periods. Multivariate analyses document that: 1) property dispersion is associated with high audit quality even after Enron scandals; 2) whereas the banking confidence has been withdrawn after Enron failure; 3) finally, Big Four auditors have no effect on the magnitude of discretionary accruals.

Keywords: auditor choice; audit quality; ownership structure; earnings management; Enron scandals; France; auditors; auditing; property dispersion; banking confidence; discretionary accruals.

DOI: 10.1504/IJCA.2013.058690

International Journal of Critical Accounting, 2013 Vol.5 No.5, pp.485 - 501

Published online: 29 Apr 2014 *

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