IDEAS home Printed from https://ideas.repec.org/a/bjw/econen/v6y2016i2p35-41.html
   My bibliography  Save this article

Effects of experience years, gender of auditors and audit firm size on firm’ discretionary accrual management: Evidence from Vietnam

Author

Listed:
  • Nguyen Minh Kieu

    (Ho Chi Minh City Open University, Vietnam)

  • Nguyen Kim Nam

    (Ho Chi Minh City Industry and Trade College, Vietnam)

  • Nguyen Thi Hang Nga

    (Banking University Ho Chi Minh City, Vietnam)

  • Nguyen Thi Ngoc Diep

    (Lac Hong University, Bien Hoa City, Vietnam)

Abstract

The objective of this study is to examine the effects of audit firm size and auditor characteristics on firms’ discretionary accruals management of companies listed on Ho Chi Minh Stock Exchange (HOSE) and Hanoi Stock Exchange (HNX). The results show that the gender of auditors affect discretionary accruals (DA). Female auditors approve DA at a lower value than male auditors. Number of experience years of auditors also affects restriction of DA. When the number of experience years of auditors increases, the magnitude of DA decreases, which means the quality of information on financial statements (FS) is higher. This study also reveals that the magnitude of DA is significantly lower amongst companies engaging a Big-4 specialist audit firm relative to companies using the audit services of a Non‐Big-4 specialist.

Suggested Citation

  • Nguyen Minh Kieu & Nguyen Kim Nam & Nguyen Thi Hang Nga & Nguyen Thi Ngoc Diep, 2016. "Effects of experience years, gender of auditors and audit firm size on firm’ discretionary accrual management: Evidence from Vietnam," HO CHI MINH CITY OPEN UNIVERSITY JOURNAL OF SCIENCE - ECONOMICS AND BUSINESS ADMINISTRATION, HO CHI MINH CITY OPEN UNIVERSITY JOURNAL OF SCIENCE, HO CHI MINH CITY OPEN UNIVERSITY, vol. 6(2), pages 35-41.
    • Handle: RePEc:bjw:econen:v:6:y:2016:i:2:p:35-41
    DOI: 10.46223/HCMCOUJS.econ.en.6.2.121.2016
    as

    Download full text from publisher

    File URL: https://journalofscience.ou.edu.vn/index.php/econ-en/article/view/121/110
    Download Restriction: no
    File URL: https://libkey.io/10.46223/HCMCOUJS.econ.en.6.2.121.2016?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Vincent L. Barker , III & George C. Mueller, 2002. "CEO Characteristics and Firm R&D Spending," Management Science, INFORMS, vol. 48(6), pages 782-801, June.
    2. Jones, Jj, 1991. "Earnings Management During Import Relief Investigations," Journal of Accounting Research, Wiley Blackwell, vol. 29(2), pages 193-228.
    3. Rusmin Rusmin, 2010. "Auditor quality and earnings management: Singaporean evidence," Managerial Auditing Journal, Emerald Group Publishing Limited, vol. 25(7), pages 618-638, July.
    4. Dechow, Patricia M. & Sloan, Richard G., 1991. "Executive incentives and the horizon problem : An empirical investigation," Journal of Accounting and Economics, Elsevier, vol. 14(1), pages 51-89, March.
    5. Dwyer, Peggy D. & Gilkeson, James H. & List, John A., 2002. "Gender differences in revealed risk taking: evidence from mutual fund investors," Economics Letters, Elsevier, vol. 76(2), pages 151-158, July.
    6. Connie L. Becker & Mark L. Defond & James Jiambalvo & K.R. Subramanyam, 1998. "The Effect of Audit Quality on Earnings Management," Contemporary Accounting Research, John Wiley & Sons, vol. 15(1), pages 1-24, March.
    7. Richard A. Bernardi & Donald F. Arnold, 1997. "An Examination of Moral Development within Public Accounting by Gender, Staff Level, and Firm," Contemporary Accounting Research, John Wiley & Sons, vol. 14(4), pages 653-668, December.
    8. John M. Friedlan, 1994. "Accounting Choices of Issuers of Initial Public Offerings," Contemporary Accounting Research, John Wiley & Sons, vol. 11(1), pages 1-31, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Andrews Owusu & Alaa Mansour Zalata & Kamil Omoteso & Ahmed A. Elamer, 2022. "Is There a Trade-Off Between Accrual-Based and Real Earnings Management Activities in the Presence of (fe) Male Auditors?," Journal of Business Ethics, Springer, vol. 175(4), pages 815-836, February.
    2. Xiaotao (Kelvin) Liu & Biyu Wu, 2021. "Do IPO Firms Misclassify Expenses? Implications for IPO Price Formation and Post-IPO Stock Performance," Management Science, INFORMS, vol. 67(7), pages 4505-4531, July.
    3. Kothari, S. P., 2001. "Capital markets research in accounting," Journal of Accounting and Economics, Elsevier, vol. 31(1-3), pages 105-231, September.
    4. Frerich Buchholz & Kerstin Lopatta & Karen Maas, 2020. "The Deliberate Engagement of Narcissistic CEOs in Earnings Management," Journal of Business Ethics, Springer, vol. 167(4), pages 663-686, December.
    5. Nitai Chandra Debnath & Suman Paul Chowdhury & Safaeduzzaman Khan, 2022. "The impact of audit quality on real earnings management: evidence from Bangladesh," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 19(2), pages 218-231, June.
    6. Denis Cormier & Michel Magnan & Bernard Morard, 2000. "The contractual and value relevance of reported earnings in a dividend-focused environment," European Accounting Review, Taylor & Francis Journals, vol. 9(3), pages 387-417.
    7. Nguyet T. M. Nguyen & Abdullah Iqbal & Radha K. Shiwakoti, 2022. "The context of earnings management and its ability to predict future stock returns," Review of Quantitative Finance and Accounting, Springer, vol. 59(1), pages 123-169, July.
    8. Hervé Stolowy & Gaetan Breton, 2000. "A Framework for the Classification of Accounts Manipulations," Working Papers hal-00597249, HAL.
    9. Mehdi Bouras & Mohamed Imen Gallali, 2017. "Earnings Management, Equity-based Compensation, Economic Conjuncture and Governance Mechanisms: A Comparative Study between France and the United States," International Journal of Economics and Financial Issues, Econjournals, vol. 7(2), pages 585-600.
    10. Jyrki Niskanen & Jukka Karjalainen & Mervi Niskanen & Jussi Karjalainen, 2011. "Auditor gender and corporate earnings management behavior in private Finnish firms," Managerial Auditing Journal, Emerald Group Publishing, vol. 26(9), pages 778-793, October.
    11. Sarowar Hossain & Larelle Chapple & Gary S. Monroe, 2018. "Does auditor gender affect issuing going‐concern decisions for financially distressed clients?," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 58(4), pages 1027-1061, December.
    12. Sangjun Cho & Chuneyoung Chung, 2022. "Board Characteristics and Earnings Management: Evidence from the Vietnamese Market," JRFM, MDPI, vol. 15(9), pages 1-16, September.
    13. Harakeh, Mostafa & El-Gammal, Walid & Matar, Ghida, 2019. "Female directors, earnings management, and CEO incentive compensation: UK evidence," Research in International Business and Finance, Elsevier, vol. 50(C), pages 153-170.
    14. Dechow, Patricia & Ge, Weili & Schrand, Catherine, 2010. "Understanding earnings quality: A review of the proxies, their determinants and their consequences," Journal of Accounting and Economics, Elsevier, vol. 50(2-3), pages 344-401, December.
    15. Maria Strydom & Hue Hwa Au Yong & Michaela Rankin, 2017. "A few good (wo)men? Gender diversity on Australian boards," Australian Journal of Management, Australian School of Business, vol. 42(3), pages 404-427, August.
    16. Alhadab, Mohammad & Clacher, Iain, 2018. "The impact of audit quality on real and accrual earnings management around IPOs," The British Accounting Review, Elsevier, vol. 50(4), pages 442-461.
    17. Garcia-Blandon, Josep & Argilés-Bosch, Josep Maria & Ravenda, Diego, 2019. "Is there a gender effect on the quality of audit services?," Journal of Business Research, Elsevier, vol. 96(C), pages 238-249.
    18. Chowdhury, Abu & Mollah, Sabur & Al Farooque, Omar, 2018. "Insider-trading, discretionary accruals and information asymmetry," The British Accounting Review, Elsevier, vol. 50(4), pages 341-363.
    19. Cormier, Denis & Martinez, Isabelle, 2006. "The association between management earnings forecasts, earnings management, and stock market valuation: Evidence from French IPOs," The International Journal of Accounting, Elsevier, vol. 41(3), pages 209-236.
    20. Jiang, Fuxiu & Zhu, Bing & Huang, Jicheng, 2013. "CEO's financial experience and earnings management," Journal of Multinational Financial Management, Elsevier, vol. 23(3), pages 134-145.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bjw:econen:v:6:y:2016:i:2:p:35-41. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Vu Tuan Truong (email available below). General contact details of provider: https://journalofscience.ou.edu.vn/index.php/econ-en .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.