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Effects of Audit Quality on Earnings Management in listed Swedish Companies
University West, School of Business, Economics and IT, Division of Business Administration.
2020 (English)Independent thesis Advanced level (degree of Master (One Year)), 10 credits / 15 HE creditsStudent thesis
Abstract [en]

Information asymmetry between agent and principal creates an opportunity for management of the company to mislead decisions of its stakeholders. To avoid information asymmetry between stakeholders and management and creating trust in capital markets auditors' role as an independent party is crucial. The negative association between audit quality and earnings management has been proved theoretically and empirically by previous studies. The purpose of this study is to examine this relationship management for listed Swedish companies. The logistic regression model has been used to investigate the association between earnings management and audit quality proxies such as auditor firm size, industry specialization, and audit fee. Earnings management has been measured by the 8-variable Beneish Model. The study analyses 60 companies from five different sectors (basic materials, consumer services, healthcare, industrials, and technology) for the period between 2016 and 2018. The evidence of the study reveals that industry specialization is a significant factor that restricting earnings management, while audit firm size and audit fees do not significantly affect earnings management for listed Swedish companies.

Place, publisher, year, edition, pages
2020. , p. 36
Keywords [en]
Earnings Management; Beneish M-score; Audit quality; Audit firm size; Industry specialization.
National Category
Economics
Identifiers
URN: urn:nbn:se:hv:diva-15527Local ID: EXF800OAI: oai:DiVA.org:hv-15527DiVA, id: diva2:1455194
Subject / course
Nationalekonomi
Educational program
Magister i finans
Supervisors
Examiners
Available from: 2020-07-23 Created: 2020-07-22 Last updated: 2020-07-23Bibliographically approved

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CiteExportLink to record
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Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
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Language
  • de-DE
  • en-GB
  • en-US
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  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
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Output format
  • html
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  • asciidoc
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