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Audit Quality And Earnings Management: Informative And Opportunist Perspective
[Full Text]
AUTHOR(S)
AdhityaAgri Putra, Nanda FitoMela
KEYWORDS
Audit Quality, Big 4 Auditor, Discretionary Accruals, Earnings Management, Indonesian Stock Exchange, Informative, Opportunist
ABSTRACT
Thisstudy is aimed to examine the effect of audit quality on earnings management in informative and opportunist perspective. Samples are 615 firm-year of manufacture companies listed in Indonesian Stock Exchange 2013-2017. Audit quality is measured by big 4 affiliation. Earnings management is measured by discretionary accruals. Analysis method uses logistics regression. Result shows that high audit quality increases informative earnings management and reduces opportunist earnings management. This result consistent to auditor’s role to mitigates asymmetric information between managers and shareholders.
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