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.
International Journal of Critical Accounting, 2018 Vol.10 No.2, pp.130 - 151
Available online: 28 May 2018 *Full-text access for editors Access for subscribers Purchase this article Comment on this article