Title: Effect and interaction between external audit quality and ownership structure on earnings management for listed French companies

Authors: Fathi Jouini; Marwa Saied

Addresses: Faculty of Economic Sciences and Management of Sousse, University of Sousse, Sousse, 4023, Tunisia ' Faculty of Economic Sciences and Management of Sfax, University of Sfax, Tunisia

Abstract: This study examines the effect of the interaction between audit quality variables and the ownership structure on earnings management based on a sample of 86 French companies listed on the stock exchange in the SBF 120 during 2010-2013. We conclude on one hand that the interaction between auditor reputation and the concentration of capital negatively affects earnings management and on the other hand, the interaction between auditor reputation and the size of float has a positive effect on earnings management. Also, the interaction between auditor seniority and the percentage of the voting rights held by the public reduces the practice of earnings management. For the effect of the interaction between auditor reputation and institutional investors, we find a negative and significant effect on the earnings management.

Keywords: auditor reputation; auditor seniority; ownership structure; earning management; external audit quality.

DOI: 10.1504/IJCA.2018.092322

International Journal of Critical Accounting, 2018 Vol.10 No.2, pp.130 - 151

Received: 12 Oct 2017
Accepted: 22 Jan 2018
Published online: 14 Jun 2018 *

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