Öz
Aim: The aim of this paper is to analyze the association between audit quality measured by audit firm size and earnings management by classification shifting.
Method: In this paper, we used 896 firm-year observations of the publicly-traded manufacturing firms in Istanbul Stock Exchange for the period of 2009 to 2017. We used least square regression method to analyze the association between audit quality and earnings management by classification shifting.
Findings: The findings showed that when the ability of the managers to manage the profit is limited by high quality audit, it is more likely to use the classification shifting by shifting the core expenses to non-operating expenses.
Results: The result is important to show that companies can turn to classification shifting as an alternative earnings management tool if their opportunity to manage accruals is limited by independent audit quality.
Anahtar Kelimeler
Audit quality classification shifting earnings management non-operating expenses.
Kaynakça
- Abernathy, J., Beyer, B., & Rapley, E. (2014). Earnings Management Constraints and Classification Shifting, Journal of Business, Finance and Accounting 41(5), 600-626.
- Adıgüzel, H. (2017). Classification Shifting in the Income-decreasing Discretionary Accrual Firms, International Journal of Financial Research 8(3), 187-194.
- Barua, A., Lin, S. & Sbaraglia, A. (2010). Earnings Management Using Discontinued Operations, The Accounting Review 85(5), 1485-1509.
- Barua, A. & Zhao, F. (2014). External Monitoring Mechanisms and Earnings Management Using Classification Shifting, Working paper, Florida International University, U.S.A.
- Behn, B. K., Gotti, G., Herman, D., & Kang, T. (2013). Classification Shifting in an International Setting: Investor Protection and Financial Analaysts Monitoring, Journal of International Accounting Research 12(2), 27-50.
- Chae, S. & Nakano, M. (2015). The Effect of Classification Shifting on Analyst Forecast Accuracy: Evidence from Japan, Hitotsubashi Journal of Commerce and Management 49(1), 22-35.
- Çetin, E. & Yaşar, A. (2020). Bir Kâr Yönetimi Aracı Olarak Sınıflandırma Değiştirmesi: Literatür İncelemesi, Mali Çözüm 30(157), 49-76.
- Fan, Y., Barua, A., Cready, W. & Thomas, W. (2010). Managing Earnings Using Classification Shifting: Evidence from Quarterly Special Items, The Accounting Review 85(4), 1303-1323.
- Francis, J.R. & Wang, D. (2008). The Joint Effect of Investor Protection and Big 4 Audits on Earnings Quality around the World, Contemporary Accounting Research 25(1), 157-191.
- Haw, I., Ho, S. & Li, A. (2011). Corporate Governance and Earnings Management by Classification Shifting, Contemporary Accounting Research 28(2), 517-553.
- Kothari, S.P., Leone, A. & Wasley, C.E. (2005). Performance Matched Discretionary Accrual Measures, Journal of Accounting and Economics 39(1), 163-197.
- Malikov, K., Manson, S. & Coakley, J. (2018). Earnings Management Using Classification Shifting of Revenues, The British Accounting Review 50(3), 291-305.
- McVay, S.E. (2006). Earnings Management Using Classification Shifting: An Examination of Core Earnings and Special Items, The Accounting Review 81(3), 501-531.
- Nagar, N., Desai, N., & Jacob, J. (2021). Do Big 4 Auditors Limit Classification Shifting? Evidence from India, Journal of International Accounting, Auditing and Taxation 42(1), 1-10.
- Pan, S. (2014). Income Classification Shifting and Financial Analysts’ Forecasts, PhD Dissertation, Louisiana State University, Louisiana, A.B.D.
- Sloan, R.G. (1996). Do Stock Prices Fully Reflect Information in Accruals and Cash Flows about Future Earnings?, The Accounting Review 71(3), 289-315.
- Zalata, A. M. & Roberts, C. (2017). Managing Earnings Using Classification Shifting: U.K. Evidence, Journal of International Accounting, Auditing and Taxation 29, 52-65.
- Zhao, F. (2012). External Monitoring Mechanism and Earnings Management Using Classification Shifting, Working Paper, Florida International University, Florida, USA.
Öz
Amaç: Bu çalışmanın amacı, denetim firması büyüklüğü ile ölçülen denetim kalitesi ve sınıflandırma değiştirmesi yoluyla kâr yönetimi arasındaki ilişkinin araştırılmasıdır.
Yöntem: Bu çalışmada, Borsa İstanbul’da işlem gören imalat sanayii sektöründe yer alan şirketlerin 2009-2017 dönemi için 896 firma-yıl gözlemleri kullanılmıştır. Denetim kalitesi ile kâr yönetimi arasındaki ilişkiyi sınıflandırma değiştirmesi yoluyla analiz etmek için en küçük kareler regresyon yöntemini kullanılmıştır.
Bulgular: Bulgular, şirket yöneticilerinin kârı yönetme kabiliyetinin yüksek kaliteli denetimle sınırlı olması durumunda esas faaliyet (çekirdek) giderlerini faaliyet dışı giderlere kaydırılması suretiyle sınıflandırma değiştirmesini kullanma ihtimallerinin arttığını göstermektedir.
Sonuç: Çalışmanın sonucu, şirketlerin tahakkukları yönetme fırsatlarının bağımsız denetim kalitesi ile kısıtlandığı durumda, alternatif kâr yönetimi aracı olarak sınıflandırma değiştirmesine yönelebileceklerini göstermesi açısından önem taşımaktadır.
Anahtar Kelimeler
Denetim Kalitesi Sınıflandırma Değiştirmesi Kâr Yönetimi Faaliyet Dışı Giderler
Kaynakça
- Abernathy, J., Beyer, B., & Rapley, E. (2014). Earnings Management Constraints and Classification Shifting, Journal of Business, Finance and Accounting 41(5), 600-626.
- Adıgüzel, H. (2017). Classification Shifting in the Income-decreasing Discretionary Accrual Firms, International Journal of Financial Research 8(3), 187-194.
- Barua, A., Lin, S. & Sbaraglia, A. (2010). Earnings Management Using Discontinued Operations, The Accounting Review 85(5), 1485-1509.
- Barua, A. & Zhao, F. (2014). External Monitoring Mechanisms and Earnings Management Using Classification Shifting, Working paper, Florida International University, U.S.A.
- Behn, B. K., Gotti, G., Herman, D., & Kang, T. (2013). Classification Shifting in an International Setting: Investor Protection and Financial Analaysts Monitoring, Journal of International Accounting Research 12(2), 27-50.
- Chae, S. & Nakano, M. (2015). The Effect of Classification Shifting on Analyst Forecast Accuracy: Evidence from Japan, Hitotsubashi Journal of Commerce and Management 49(1), 22-35.
- Çetin, E. & Yaşar, A. (2020). Bir Kâr Yönetimi Aracı Olarak Sınıflandırma Değiştirmesi: Literatür İncelemesi, Mali Çözüm 30(157), 49-76.
- Fan, Y., Barua, A., Cready, W. & Thomas, W. (2010). Managing Earnings Using Classification Shifting: Evidence from Quarterly Special Items, The Accounting Review 85(4), 1303-1323.
- Francis, J.R. & Wang, D. (2008). The Joint Effect of Investor Protection and Big 4 Audits on Earnings Quality around the World, Contemporary Accounting Research 25(1), 157-191.
- Haw, I., Ho, S. & Li, A. (2011). Corporate Governance and Earnings Management by Classification Shifting, Contemporary Accounting Research 28(2), 517-553.
- Kothari, S.P., Leone, A. & Wasley, C.E. (2005). Performance Matched Discretionary Accrual Measures, Journal of Accounting and Economics 39(1), 163-197.
- Malikov, K., Manson, S. & Coakley, J. (2018). Earnings Management Using Classification Shifting of Revenues, The British Accounting Review 50(3), 291-305.
- McVay, S.E. (2006). Earnings Management Using Classification Shifting: An Examination of Core Earnings and Special Items, The Accounting Review 81(3), 501-531.
- Nagar, N., Desai, N., & Jacob, J. (2021). Do Big 4 Auditors Limit Classification Shifting? Evidence from India, Journal of International Accounting, Auditing and Taxation 42(1), 1-10.
- Pan, S. (2014). Income Classification Shifting and Financial Analysts’ Forecasts, PhD Dissertation, Louisiana State University, Louisiana, A.B.D.
- Sloan, R.G. (1996). Do Stock Prices Fully Reflect Information in Accruals and Cash Flows about Future Earnings?, The Accounting Review 71(3), 289-315.
- Zalata, A. M. & Roberts, C. (2017). Managing Earnings Using Classification Shifting: U.K. Evidence, Journal of International Accounting, Auditing and Taxation 29, 52-65.
- Zhao, F. (2012). External Monitoring Mechanism and Earnings Management Using Classification Shifting, Working Paper, Florida International University, Florida, USA.
Ayrıntılar
| Birincil Dil | İngilizce |
|---|---|
| Konular | İşletme |
| Bölüm | Özgün Makaleler |
| Yazarlar | |
| Yayımlanma Tarihi | 20 Ağustos 2021 |
| Gönderilme Tarihi | 27 Haziran 2021 |
| Kabul Tarihi | 7 Ağustos 2021 |
| Yayımlandığı Sayı | Yıl 2021 Cilt: 9 Sayı: 2 |
Cited By
THE RELATIONSHIP BETWEEN SUSTAINABILITY AND EARNINGS MANAGEMENT: A STUDY ON OECD COUNTRIES
Muhasebe Bilim Dünyası Dergisi
https://doi.org/10.31460/mbdd.1211177
Bu dergi Creative Commons Atıf-GayriTicari 4.0 Uluslararası Lisansı ile lisanslanmıştır.