Firm Ownership Type, Earnings Management and Auditor Relationships: Evidence from India

Ghosh, Saibal (2010): Firm Ownership Type, Earnings Management and Auditor Relationships: Evidence from India. Published in: Managerial Auditing Journal , Vol. 26, No. 4 (2011): pp. 350-369.

Abstract

Using data on Indian listed companies for 2005, the paper examines how firm ownership relates to auditor choice. More specifically, we test several hypotheses about the links between firm ownership, auditor relationships and earnings management. The results indicate that firms having high discretionary accruals are less likely to be audited by domestic entities. The analysis also suggests that domestic auditors are less likely to be preferred by both foreign and Indian private corporates.

• Item Type: MPRA Paper
• Language: English
• Keywords: external auditing; firm ownership; multiple auditors; earnings management; ordered logit; India
• Subjects: C - Mathematical and Quantitative Methods > C3 - Multiple or Simultaneous Equation Models ; Multiple Variables > C31 - Cross-Sectional Models ; Spatial Models ; Treatment Effect Models ; Quantile Regressions ; Social Interaction Models; M - Business Administration and Business Economics ; Marketing ; Accounting ; Personnel Economics > M4 - Accounting and Auditing > M42 - Auditing; G - Financial Economics > G3 - Corporate Finance and Governance > G32 - Financing Policy ; Financial Risk and Risk Management ; Capital and Ownership Structure ; Value of Firms ; Goodwill

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