Articlediamond2021

The Moderating Effect of Audit Quality on the Links Between Stock Market Segmentations, Surplus Free Cash Flow, and Income-increasing Discretionary Accruals

Ahmad A. Toumeh N.A. · Sofri Yahya · Mohammed M. Yassin · Maha D. Ayoush

31 citations0/0 files storedAustralasian Accounting Business and Finance Journal

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Auditing, Earnings Management, Governance Corporate Finance and Governance Corporate Governance and Financial Management

Abstract

The objective of this paper is to examine the impacts of stock market segmentations (SMS) and surplus free cash flow (SFCF) on income-increasing discretionary accruals. The study also provides the initial evidence regarding the influence of audit quality (AQ) as a moderating variable on those relationships. A sample of non-financial firms was taken from the list of Amman Stock Exchange over the period 2013-2019. Using Huber-White’s sandwich estimator for pooled OLS regression, the current research presents empirical evidence harmonious with the prediction in all hypotheses. Further, the findings document that a Big 4 auditor weakens the SMS-DAC and SFCF-DAC associations, which suggests that the role of Big 4 audit firms is effective in mitigating management’s opportunistic behaviour. However, the reported results provide beneficial information to investors, regulators, external auditors, policymakers, shareholders, and other countries with similar institutional environment.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 31 citations exist upstream.

References

1977Institutionalized Organizations: Formal Structure as Myth and Ceremony 1986Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers 2021Econometric Analysis of Panel Data 2005Performance matched discretionary accrual measures 1995Detecting Earnings Management.1998The Effect of Audit Quality on Earnings Management*1989Free Cash Flow and Stockholder Gains in Going Private Transactions 1989Consistent Covariance Matrix Estimation with Cross-Sectional Dependence and Heteroskedasticity in Financial Data

Cited by

2023Environmental, social, and governance ( ESG ) disclosure, earnings management and cash holdings: Evidence from a European context 2025Environmental, social and governance (ESG) disclosure quality in developing countries: evidence from the ASEAN region 2024RETRACTED: The role of metaverse and blockchain in enhancing digital Islamic finance: empirical perspective 2023Mediating influence of earnings management in the nexus between audit quality and company value: new proof from Jordanian market 2024Corporate performance modeling through disclosure quality at the level of developing countries in Southeast Asia

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.