The Relation between Auditors' Fees for Nonaudit Services and Earnings Management
Top Cited Papers
- 1 March 2002
- journal article
- research article
- Published by American Accounting Association in The Accounting Review
- Vol. 77 (s-1) , 71-105
- https://doi.org/10.2308/accr.2002.77.s-1.71
Abstract
This paper examines whether auditor fees are associated with earnings management and the market reaction to the disclosure of auditor fees. Using data collected from proxy statements, we present evidence that nonaudit fees are positively associated with small earnings surprises and the magnitude of discretionary accruals, while audit fees are negatively associated with these earnings management indicators. We also find evidence of a negative association between nonaudit fees and share values on the date the fees were disclosed, although the effect is small in economic terms.Keywords
All Related Versions
This publication has 35 references indexed in Scilit:
- Client Importance, Non-audit Fees, and Abnormal AccrualsSSRN Electronic Journal, 2001
- The Acquiescent Gatekeeper: Reputational Intermediaries, Auditor Independence and the Governance of AccountingSSRN Electronic Journal, 2001
- Audit, Non-audit and Information Technology Fees: Some Empirical EvidenceSSRN Electronic Journal, 2001
- Performance Matched Discretionary Accrual MeasuresSSRN Electronic Journal, 2001
- An Economic Analysis of Auditor Independence for a Multi-Client, Multi-Service Public Accounting FirmSSRN Electronic Journal, 1997
- The jointness of audit fees and demand for MAS: A self‐selection analysis*Contemporary Accounting Research, 1990
- The Effect of Nonaudit Services on the Pricing of Audit Services: Further EvidenceJournal of Accounting Research, 1986
- An Empirical Investigation of Stockholder Reaction to Disclosures Required by ASR No. 250Journal of Accounting Research, 1985
- An Empirical Assessment of the Impact of SEC Nonaudit Service Disclosure Requirements on Independent Auditors and Their ClientsJournal of Accounting Research, 1984
- A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for HeteroskedasticityEconometrica, 1980