ISSN: 2225-8329
Open access
Corporate failures and accounting scandals (e.g. Enron, Worldcom cases etc.) have provided a strong incentive to regulators to consider the major role that audit committees can play. This current study extends the Piot and Janin (2007) study and examines the relationship between independence audit committee and the proceeded measures of earnings management. Using a sample consisting of 279 firm-year observations concerning the years ranging from 2002 to 2005, the results of this study shows that the audit committee independence is linked to earnings management. Yet, contrary to the intentions of new directives promulgated by several ruling bodies, it seems clear to us that a totally-independent audit committee does not influence earnings management.
Abaoub, E., and Amar, A. (2009), “L’effet de l’expertise, de l’indépendance et de l’activité du comité d’audit sur la gestion du résultat”, Management et Sciences Sociales, 7, 117-137.
Becker, C., Defond, M., Jiambalvo, J., Subramanyam, K. R. (1998), “The effect of audit quality on earnings management”, Contemporary accounting research, 15, 1, 1-24.
Bradbury, M. E., Mak, Y. T., Tan, S. M. (2006), “Board characteristics, audit committee characteristics and abnormal accruals”, Pacific Accounting Review, 18, 2, 47-68.
Breton, G., Schatt, A. (2003), «Manipulation comptable: les dirigeants et les autres parties prenantes», la revue du financier (Janvier), n°139, 18-25.
Choi, J. H., Jeon, K. A., Parkj, I. (2004), “The role of audit committees in decreasing earnings management: Korean evidence, Int.J.Accounting, Auditing, and Performance Evaluation, 1, 1, 37-60.
Dechow, P. M., Sloan, R. G., Sweeney, A. P. (1995), “Detecting earnings management”, The Accounting Review 70, 193-225.
Francis, J., Maydew, E., Sparks, C. (1999), “The role of big six auditors in the credible reporting of accruals”, Auditing, a journal of theory and practice, Fall 99, volume 18, Issue 2, 17-35.
Kennedy, P. (1985), “A Guide to Econometrics”, Cambridge, MA: MIT Press, 1985.
Klein, A. (2002), ‘Audit Committee, Board of Director Characteristics, and Earnings Management’, Journal of Accounting and Economics, 33, 375-400.
Klein, A. (2006), “Audit Committee, Board of Director Characteristics, and Earnings Management”, Law & Economics Research Paper Series Working Paper No. 06-42, New York University School of Law.
Kothari, S. P., Andrew, L. J., Charles, W. E. (2005), “Performance matched discretionary accrual measures”, Journal of Accounting and Economics 39, Issue 1, 163-197.
Piot, C., and Janin, R. (2007), « External Auditors, Audit Committees and Earnings Management in France », European accounting review, 16, 2, p. 429-454.
Piot, C., and Janin, R. (2004), « Qualité de l’audit, gouvernance et gestion du résultat comptable en France », 25ème Congrès de l’Association Francophone de Comptabilité, Orléans, 12-14 mai et 3ème Colloque International Gouvernance et Juricomptabilité, HEC Montréal, 3-4 juin 2004.
Yang, S., Krishnan, J. (2005), “Audit Committees and Quarterly Earnings Management”, International Journal of Auditing, 9, 201-219.
In-Text Citation: (Amar, 2014)
To Cite this Article: Amar, A. B. (2014). The Effect of Independence Audit Committee on Earnings Management: The Case in French. International Journal of Academic Research in Accounting Finance and Management Sciences. 4(1), 136 - 144.
Copyright: © 2018 The Author(s)
Published by Human Resource Management Academic Research Society (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode