Engagement Partners Attributes and Earnings Quality: Evidence from Borsa İstanbul

29 Pages Posted: 19 Jul 2017  

Murat Ocak

Trakya University, Uzunköprü School of Applied Sciences, Department of Business Information Management

Gökberk Can

İstanbul Aydın University

Date Written: April 25, 2017

Abstract

This paper investigates the effects of engagement partners’ attributes on earnings quality using 725 firm*year observations between 2008 and 2013 from Borsa İstanbul manufacturing industry firms. We use two indicators of earnings quality to test the effects of gender, educational background, experience, and certification from among engagement partners’ attributes. Our findings emphasize that engagement partners’ attributes do not have any impact on real activities-based earnings management but have an impact on accruals-based earnings management. Female engagement partners have a negative effect on the absolute value of discretionary accruals, especially in negative discretionary accruals. On the other hand, we find that engagement partners with longer experience have negative impact on the absolute and negative discretionary accruals.

Keywords: Earnings Quality, Engagement Partner, Gender, Experience, Accruals, Real Activities

JEL Classification: M40, M41

Suggested Citation

Ocak, Murat and Can, Gökberk, Engagement Partners Attributes and Earnings Quality: Evidence from Borsa İstanbul (April 25, 2017). Available at SSRN: https://ssrn.com/abstract=2998780

Murat Ocak (Contact Author)

Trakya University, Uzunköprü School of Applied Sciences, Department of Business Information Management ( email )

Edirne
Turkey

Gökberk Can

İstanbul Aydın University ( email )

Office: R807, Florya Campus
İstanbul, Kucukcekmece 34295
Turkey
+905519072108 (Phone)

HOME PAGE: http://www.gokberkcan.com

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