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Discretionary accounting accruals, managers' incentives, and audit fees
journal contribution
posted on 2003-01-01, 00:00 authored by Ferdinand GulFerdinand Gul, C J P CHEN, J S L TSUI, H K P UniversityThis paper examines the linkages between discretionary accruals (DAs), managerial share ownership, management compensation, and audit fees. It draws on the theory that managers of firms with high management ownership are likely to use DAs to communicate value-relevant information, while managers of firms with high accounting-based compensation are likely to use DAs opportunistically to manage earnings to improve their compensation. OLS regression results of 648 Australian firms show that (1) there is a positive association between DAs and audit fees; (2) managerial ownership negatively affects the positive relationship between DAs and audit fees; and (3) this negative impact is further found to be weaker for firms with high accounting-based management compensation.
History
Journal
Contemporary accounting researchVolume
20Issue
3Season
FallPagination
441 - 464Publisher
Canadian Academic Accounting AssociationLocation
[Canada]Publisher DOI
ISSN
0823-9150Language
engPublication classification
C Journal article; C1.1 Refereed article in a scholarly journalCopyright notice
2003, CAAAUsage metrics
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