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The Impact of Audit Characteristics on Earnings Management: Evidence from Dubai Banks

Author

Listed:
  • Sinan Zuhair Mohammed Jameel

    (Accounting Department, University of Mosul, Mosul 41001, Iraq)

  • Ali Malallah Al-Sendy

    (Accounting Department, University of Mosul, Mosul 41001, Iraq)

  • Kubra Muhammad Taher Hamoudi

    (Accounting Department, University of Mosul, Mosul 41001, Iraq)

Abstract

This study investigated the impact of audit committee characteristics on earnings management based on data collected from the annual reports of banks operating in Dubai from 2010 to 2022. The audit committee’s independence and the number of members had a statistically significant effect on earnings management. Nevertheless, auditor reputation, gender, financial expertise, time commitment, and the number of meetings insignificantly affected earnings management. The implications of this study benefit both business leaders and investors, who aim to observe the actual state of their company’s finances by strengthening the auditing process.

Suggested Citation

  • Sinan Zuhair Mohammed Jameel & Ali Malallah Al-Sendy & Kubra Muhammad Taher Hamoudi, 2024. "The Impact of Audit Characteristics on Earnings Management: Evidence from Dubai Banks," JRFM, MDPI, vol. 17(6), pages 1-15, June.
    • Handle: RePEc:gam:jjrfmx:v:17:y:2024:i:6:p:249-:d:1414334
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    References listed on IDEAS

    as
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    2. Burgstahler, David & Dichev, Ilia, 1997. "Earnings management to avoid earnings decreases and losses," Journal of Accounting and Economics, Elsevier, vol. 24(1), pages 99-126, December.
    3. Bartov, Eli & Gul, Ferdinand A. & Tsui, J.S.L.Judy S. L., 2000. "Discretionary-accruals models and audit qualifications," Journal of Accounting and Economics, Elsevier, vol. 30(3), pages 421-452, December.
    4. Kanagaretnam, Kiridaran & Lim, Chee Yeow & Lobo, Gerald J., 2010. "Auditor reputation and earnings management: International evidence from the banking industry," Journal of Banking & Finance, Elsevier, vol. 34(10), pages 2318-2327, October.
    5. Abdullah Iqbal & Norman Strong, 2010. "The effect of corporate governance on earnings management around UK rights issues," International Journal of Managerial Finance, Emerald Group Publishing Limited, vol. 6(3), pages 168-189, June.
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