Audit Quality, Institutional Environments, and Earnings Management: An Empirical Analysis of New Listings

The purpose of this article is to investigate the relationship between audit quality, role institutional environments at provincial level, and earnings management around listing events by using data from 189 newly-listed companies on Hochiminh Stock Exchange. Audit quality was proxied Big4, auditor tenure, industry specialization, while quantified as current discretionary accruals. findings indicated that there no for Big 4, specialization in curbing management, regression result full sample. Interestingly, effect differed substantially across signs management. results different forms showed a contrast tenure can mitigate activities income-increasing positive model, explain incentives managing negative model. Moreover, study found evidence impact governance However, case motive upward good tends provide greater benefits reduce occurrence After controlling dummy interaction variables may be related environment, remains unchanged. Finally, study’s make several contributions literature are relevant investors, policymakers, firms.