The effect of key audit matters on the association of credit risk and earnings quality

IF 2.8 3区 管理学 Q2 BUSINESS, FINANCE Managerial Auditing Journal Pub Date : 2023-07-31 DOI:10.1108/maj-02-2022-3465
Shuling Chiang, G. Kleinman, Picheng Lee
{"title":"The effect of key audit matters on the association of credit risk and earnings quality","authors":"Shuling Chiang, G. Kleinman, Picheng Lee","doi":"10.1108/maj-02-2022-3465","DOIUrl":null,"url":null,"abstract":"Purpose The purpose of this study is to examine whether the required disclosure and the high frequency of key audit matters (KAMs) are likely to moderate the effect of higher credit risk on earnings quality. Design/methodology/approach This study uses 15,106 Taiwanese firm-year observations to explore the relationship between earnings quality and credit risk during the 2011 to 2020 period. We use the two-stage least squares method to test whether the presence of KAM disclosures moderated the association between earnings quality and credit risk and also to examine whether higher KAM frequency moderates the association between earnings quality and credit risk. Findings Our results provide evidence that the presence of a KAM disclosure requirement moderates the impact of firms with higher credit risk on earnings quality. In addition, there is significant evidence that the higher the frequency of KAM disclosures the greater the moderation impact that is found. Originality/value This research investigates whether the disclosure and high frequency of KAMs moderates the effect of credit riskiness on earnings quality. This study improves our understanding of whether more KAMs disclosures would improve earnings quality of firms with higher credit risk. In addition, we also use Beneish M-SCORE, as an alternative earnings quality proxy, to reinforce our empirical results. This markedly differentiates this paper from other studies.","PeriodicalId":47823,"journal":{"name":"Managerial Auditing Journal","volume":null,"pages":null},"PeriodicalIF":2.8000,"publicationDate":"2023-07-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Managerial Auditing Journal","FirstCategoryId":"91","ListUrlMain":"https://doi.org/10.1108/maj-02-2022-3465","RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"BUSINESS, FINANCE","Score":null,"Total":0}
引用次数: 0

Abstract

Purpose The purpose of this study is to examine whether the required disclosure and the high frequency of key audit matters (KAMs) are likely to moderate the effect of higher credit risk on earnings quality. Design/methodology/approach This study uses 15,106 Taiwanese firm-year observations to explore the relationship between earnings quality and credit risk during the 2011 to 2020 period. We use the two-stage least squares method to test whether the presence of KAM disclosures moderated the association between earnings quality and credit risk and also to examine whether higher KAM frequency moderates the association between earnings quality and credit risk. Findings Our results provide evidence that the presence of a KAM disclosure requirement moderates the impact of firms with higher credit risk on earnings quality. In addition, there is significant evidence that the higher the frequency of KAM disclosures the greater the moderation impact that is found. Originality/value This research investigates whether the disclosure and high frequency of KAMs moderates the effect of credit riskiness on earnings quality. This study improves our understanding of whether more KAMs disclosures would improve earnings quality of firms with higher credit risk. In addition, we also use Beneish M-SCORE, as an alternative earnings quality proxy, to reinforce our empirical results. This markedly differentiates this paper from other studies.
查看原文
分享 分享
微信好友 朋友圈 QQ好友 复制链接
本刊更多论文
关键审计事项对信用风险与盈余质量关联的影响
本研究的目的是检验必要的披露和关键审计事项(KAMs)的高频率是否可能调节较高的信用风险对盈余质量的影响。设计/方法/方法本研究采用15106家台湾公司的年度观察,探讨2011年至2020年期间盈余质量与信用风险之间的关系。我们使用两阶段最小二乘法来检验KAM披露的存在是否会调节盈余质量和信用风险之间的关联,并检验更高的KAM频率是否会调节盈余质量和信用风险之间的关联。研究结果表明,信用风险披露要求的存在缓和了信用风险较高的公司对盈余质量的影响。此外,有显著证据表明,KAM披露的频率越高,发现的调节影响越大。原创性/价值本研究考察了信用风险对盈余质量的影响是否受到信用风险披露和高频率的调节。本研究提高了我们对更多的KAMs披露是否会提高信用风险较高的公司的盈余质量的理解。此外,我们还使用Beneish M-SCORE作为盈余质量的替代指标来强化我们的实证结果。这是本文与其他研究的显著区别。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
求助全文
约1分钟内获得全文 去求助
来源期刊
CiteScore
5.40
自引率
13.80%
发文量
45
期刊介绍: The key areas addressed are: ■Audit and Assurance (financial and non-financial) ■Financial and Managerial Reporting ■Governance, controls, risks and ethics ■Organizational issues including firm cultures, performance and development In addition, the evaluation of changes occurring in the auditing profession, as well as the broader fields of accounting and assurance, are also explored. Debates concerning organizational performance and professional competence are also covered.
期刊最新文献
How hours allocated to year-round auditing procedures affect audit quality Ambiguity in international financial reporting standards (IFRS) and its impact on judgments of auditors Product market competition and audit fees: new evidence The impact of remote auditing on audit quality: the moderating role of technology readiness CEO inside debt and industry specialist auditor
×
引用
GB/T 7714-2015
复制
MLA
复制
APA
复制
导出至
BibTeX EndNote RefMan NoteFirst NoteExpress
×
×
提示
您的信息不完整,为了账户安全,请先补充。
现在去补充
×
提示
您因"违规操作"
具体请查看互助需知
我知道了
×
提示
现在去查看 取消
×
提示
确定
0
微信
客服QQ
Book学术公众号 扫码关注我们
反馈
×
意见反馈
请填写您的意见或建议
请填写您的手机或邮箱
已复制链接
已复制链接
快去分享给好友吧!
我知道了
×
扫码分享
扫码分享
Book学术官方微信
Book学术文献互助
Book学术文献互助群
群 号:481959085
Book学术
文献互助 智能选刊 最新文献 互助须知 联系我们:info@booksci.cn
Book学术提供免费学术资源搜索服务,方便国内外学者检索中英文文献。致力于提供最便捷和优质的服务体验。
Copyright © 2023 Book学术 All rights reserved.
ghs 京公网安备 11010802042870号 京ICP备2023020795号-1