Research Article
The Effect of Independent Auditing Quality on Accounting Conservatism: A Empirical Research on the BİST
Abstract
In this study,
the effect of independent audit quality on accounting prudential was
investigated. Accordingly, the data of 73 companies that traded on Borsa
İstanbul (BIST) between 2012-2016 were used. In the study, while the size of
the audit firm, the audit opinion and the change of the audit firm by years
which are the indicator of audit quality are independent variable, accounting
conservatism is dependent variable. Multiple regression analysis was used in
the empirical analysis. As a result of the analysis, it was found that there is
a statistically significant and positive between the size of audit firm and
audit opinion with prudence. However, there wasn’t statistically significant
relationship between the audit firm's change over years and prudence.
Keywords
References
- Abdullah F., Shah, A. K. & Safi, U. (2012). Firm Performance and The Nature Of Agency Pathan Problems İn Insiders-Controlled Firms: Evidence From Pakistan. The Pakistan Development Review, 51 (4), (161-183).Almeida, J. E. F. & Almeida, J. C. G. (2009). Auditoria e earnings management: estudo empírico nas empresas abertas auditadas pelas big four e demais firmas de auditoria. Revista Contabilidade & Finanças, 20 (50), p.62-74.Arel, B., Brody, R., & Pany, K. (2005). Audit Firm Rotation and Audit Quality. The CPA Journal, 75 (1), 36-39.Azevedo, F. B. & Costa, F. M. (2012). Efeito da troca da firma de auditoria no gerenciamento de resultados das companhias abertas brasileiras. RAM Revista de Administração do Mackenzie, 13 (5), 65-100.Basu, S. (1997). The Conservatism Principle and The Asymmetric Timeliness of Earnings. Journal of Accounting and Economics, 24(1), 40-51.Bliss, J.H. (1924). Management through accounts. New York: Ronald Press.Braunbeck, G. (2010). O. Determinantes da qualidade das auditorias independentes no Brasil. Tese de dou¬torado, Universidade de São Paulo, São Paulo, SP, Brasil.Cengiz, S., Yusuf, D. ve Güngör, S. (2017). Bağımsız Denetim Kalitesinin Finansal Performans Üzerindeki Etkisinin İncelenmesi: Borsa İstanbul’da Bir Uygulama. Mehmet Akif Ersoy Üniversitesi Sosyal Bilimler Enstitüsü Dergisi, 9 (19), 171-197.Chan, K., Farrell, B.Healy, P. & Lee, P. (2011). Firm Performance Following Auditor Changes For Audit Fee Savings. Journal of Business & Economics Research, Vol: 7, No: 10, (17-26).Chi, W., Huang, H., Liao, Y., & Xie, H. (2009). Mandatory Audit-Partner Rotation, Audit Quality and Market Perception: Evidence from Taiwan. Contemporary Accounting Research, 26(2), 359-391.Connie, L., Mark, L., ve James, J. (1998). The effect of audit quality on earnings management. Contemporary Accounting Research, 15 (1), 1-24.Cupertino, C., & Martinez, A. L. (2008). Qualidade da auditoria e earnings management risk assessment através do nível de accruals discricionários. Contabilidade Vista & Revista, 19(3), 69-93.DeAngelo, L. E. (1981), Auditors Size And Audit Quality. Journal of Accounting and Economics, 3(3) (183-199).Ebrahim, A. (2001). Auditing quality, auditor tenure, client importance, and earnings management: Additional evidence. Rutgers University. www.aaahq.org/audit/midyear.Fooladi, M. & Shukor, Z. A. (2012), Board Of Directors, Audit Quality And Firm Performance: Evidence From Malaysia In National Research & Innovation Conference for Graduate Students in Social Sciences, December 7-9, ISBN 978 983 2408 086, (87-96).Ghosh, A, & Moon, D. (2005). Auditor tenure impair audit quality. The Accounting Review, 80(2), 585-612.Hamdan, A., Al-Hayale, T. & Aboagela, E. (2012). The Impact of Audit Committee Characteristics on Accounting Conservatism: Additional Evidence from Jordan, J. King Saud Univ., Vol. 24 No. 1, pp. 1-15.Jenkins, D. S., & Velury, U. (2008). Does auditor tenure impact the reporting of conservative earnings. Journal of Accounting and Public Policy, 27(2), 115–132.Krishnan, G. V., & Yang, J. S. (2009). Recent trends in audit report and earnings announcement lag. Ac¬counting Horizons, 23(3), 265-288.Kyereboah-Coleman, A. (2007). Corporate Governance and Firm Performance in Africa: A Dynamic Panel Analysis, International Conference on Corporate Governance in Emerging Markets, Global Corporate Governance Forum (GCGF) and Asian Institute of Corporate Governance (AICG), 15th-17th November, 2007, Sabancı University, Istanbul, Turkey.Lim, R. (2011). Are corporate governance attributes associated with accounting conservatism?. Accounting & Finance, 51(4), 1007–1030.Lobo, G. J., & Zhou, J. (2005). To swear early or not swear early? an empirical investigation of factors af¬fecting CEO’s decisions. Journal of Accounting and Public Policy, 24(2), 153-160.Miettinen, J. (2011). The role of audit quality on the relationship between auditee’s agency problems and financial information quality. Paper presented at the Department of Accounting and Finance, University of Vaasa, Finland.Pashaki, M. M., & Kheradyar, S. (2015). An investigation into the effect of audit quality on accounting conservatism in companies listed in Tehran stock exchange. International Letters of Social and Humanistic Sciences, 50, 107-117.Paulo, I.I.S.L.M., Cavalcante, P.R.N. & Paulo, E. (2013). The Relationship between Auditing Quality and Accounting Conservatism in Brazilian Companies. Journal of Education and Research in Accounting. 7(3), 293-314.Ruch, G. & Taylor, G. ( 2015). Accounting Conservatism: A Review of the Literature. Journal of Accounting Literature, 34, 17-38.Sayyar, H., Basiruddin, R., Rasid, S. Z. A. E. & Mohamed A. (2015), The Impact Of Audit Quality On Firm Performance: Evidence From Malaysia, International Business School, University Teknology Malaysia.Soliman, M.M. (2014). Auditing quality characteristics and accounting conservatism: An empirical study of the listed companies in Egypt. Corporate Ownership and Control. 11(2), 352-361.Tuan, K. (2016). Denetim Komitesi Özellikleri ve İhtiyatlılık Arasındaki İlişki: Borsa İstanbul Örneği. Muhasebe ve Denetime Bakış, 15 (47), 115.Vardar, G. Ç. (2018). Uluslararası Muhasebe/Finansal Raporlama Standartlarının Koşullu Ve Koşulsuz İhtiyatlılık Uygulamaları Açısından Değerlendirilmesi: Finansal Tabloların İhtiyatlılığı Üzerindeki Etkisine İlişkin Bir Literatür Araştırması. Muhasebe Bilim Dünyası Dergisi, 20, 150-172.Watts, R. L. (2003). Conservatism in accounting part I: explanations and implications. Accounting Horizons, 17(3), 207-221.Yeganeh, S., Kangarlouei, J., & Motavassel, M. (2012), The investigation of the impact of auditor tenure and audit firm size on accounting conservatism in financial reporting of firms listed in Tehran Stock Exchange. International Journal of Finance and Accounting, Vol. 1 No. 3, pp. 38-44.Yerdelen Tatoğlu F. (2012). Stata Uygulamalı İleri Panel Veri Analizi, Beta Yayınları: İstanbul.Ziaee, M. (2014). The Effect Of Audit Quality On The Performance Of Listed Companies In Tehran Stock Exchange. International Letters of Social and Humanistic Sciences, Vol:21, (36- 44).Zureigat, M. (2011). The Effect Of Ownership Structure On Audit Quality: Evidence From Jordan. International Journal Of Business And Social Science, Vol: 2, No: 10, (38-46).
Year 2019,
2019 Additional Number, 140 - 149, 27.10.2019
Abstract
Bu çalışmada bağımsız denetim
kalitesinin muhasebe ihtiyatlılığı üzerindeki etkisi araştırılmıştır. Bu amacı gerçekleştirmek üzere Borsa
İstanbul (BİST)’da işlem gören 73 şirketin 2012-2016 yıllarına ait verilerinden
yararlanılmıştır. Çalışmada bağımsız değişken olarak denetim kalitesi
göstergesi olan denetim firması büyüklüğü, denetim görüşü ve denetim firmasının
yıllar itibariyle değişmesi; bağımlı değişken olarak ise muhasebe ihtiyatlılığı
kullanılmıştır. Ampirik analizde, çoklu regresyon analizi kullanılmıştır. Yapılan
analiz sonucunda denetim firmasının büyüklüğü ve denetim görüşü ile ihtiyatlılık arasında istatistiksel açıdan anlamlı ve pozitif yönde etkisi olduğu
tespit edilmiştir. Ancak denetim firmasının yıllar
itibariyle
değişmesi ile ihtiyatlılık arasında istatistiksel
açıdan anlamlı bir ilişki
bulunamamıştır.
References
- Abdullah F., Shah, A. K. & Safi, U. (2012). Firm Performance and The Nature Of Agency Pathan Problems İn Insiders-Controlled Firms: Evidence From Pakistan. The Pakistan Development Review, 51 (4), (161-183).Almeida, J. E. F. & Almeida, J. C. G. (2009). Auditoria e earnings management: estudo empírico nas empresas abertas auditadas pelas big four e demais firmas de auditoria. Revista Contabilidade & Finanças, 20 (50), p.62-74.Arel, B., Brody, R., & Pany, K. (2005). Audit Firm Rotation and Audit Quality. The CPA Journal, 75 (1), 36-39.Azevedo, F. B. & Costa, F. M. (2012). Efeito da troca da firma de auditoria no gerenciamento de resultados das companhias abertas brasileiras. RAM Revista de Administração do Mackenzie, 13 (5), 65-100.Basu, S. (1997). The Conservatism Principle and The Asymmetric Timeliness of Earnings. Journal of Accounting and Economics, 24(1), 40-51.Bliss, J.H. (1924). Management through accounts. New York: Ronald Press.Braunbeck, G. (2010). O. Determinantes da qualidade das auditorias independentes no Brasil. Tese de dou¬torado, Universidade de São Paulo, São Paulo, SP, Brasil.Cengiz, S., Yusuf, D. ve Güngör, S. (2017). Bağımsız Denetim Kalitesinin Finansal Performans Üzerindeki Etkisinin İncelenmesi: Borsa İstanbul’da Bir Uygulama. Mehmet Akif Ersoy Üniversitesi Sosyal Bilimler Enstitüsü Dergisi, 9 (19), 171-197.Chan, K., Farrell, B.Healy, P. & Lee, P. (2011). Firm Performance Following Auditor Changes For Audit Fee Savings. Journal of Business & Economics Research, Vol: 7, No: 10, (17-26).Chi, W., Huang, H., Liao, Y., & Xie, H. (2009). Mandatory Audit-Partner Rotation, Audit Quality and Market Perception: Evidence from Taiwan. Contemporary Accounting Research, 26(2), 359-391.Connie, L., Mark, L., ve James, J. (1998). The effect of audit quality on earnings management. Contemporary Accounting Research, 15 (1), 1-24.Cupertino, C., & Martinez, A. L. (2008). Qualidade da auditoria e earnings management risk assessment através do nível de accruals discricionários. Contabilidade Vista & Revista, 19(3), 69-93.DeAngelo, L. E. (1981), Auditors Size And Audit Quality. Journal of Accounting and Economics, 3(3) (183-199).Ebrahim, A. (2001). Auditing quality, auditor tenure, client importance, and earnings management: Additional evidence. Rutgers University. www.aaahq.org/audit/midyear.Fooladi, M. & Shukor, Z. A. (2012), Board Of Directors, Audit Quality And Firm Performance: Evidence From Malaysia In National Research & Innovation Conference for Graduate Students in Social Sciences, December 7-9, ISBN 978 983 2408 086, (87-96).Ghosh, A, & Moon, D. (2005). Auditor tenure impair audit quality. The Accounting Review, 80(2), 585-612.Hamdan, A., Al-Hayale, T. & Aboagela, E. (2012). The Impact of Audit Committee Characteristics on Accounting Conservatism: Additional Evidence from Jordan, J. King Saud Univ., Vol. 24 No. 1, pp. 1-15.Jenkins, D. S., & Velury, U. (2008). Does auditor tenure impact the reporting of conservative earnings. Journal of Accounting and Public Policy, 27(2), 115–132.Krishnan, G. V., & Yang, J. S. (2009). Recent trends in audit report and earnings announcement lag. Ac¬counting Horizons, 23(3), 265-288.Kyereboah-Coleman, A. (2007). Corporate Governance and Firm Performance in Africa: A Dynamic Panel Analysis, International Conference on Corporate Governance in Emerging Markets, Global Corporate Governance Forum (GCGF) and Asian Institute of Corporate Governance (AICG), 15th-17th November, 2007, Sabancı University, Istanbul, Turkey.Lim, R. (2011). Are corporate governance attributes associated with accounting conservatism?. Accounting & Finance, 51(4), 1007–1030.Lobo, G. J., & Zhou, J. (2005). To swear early or not swear early? an empirical investigation of factors af¬fecting CEO’s decisions. Journal of Accounting and Public Policy, 24(2), 153-160.Miettinen, J. (2011). The role of audit quality on the relationship between auditee’s agency problems and financial information quality. Paper presented at the Department of Accounting and Finance, University of Vaasa, Finland.Pashaki, M. M., & Kheradyar, S. (2015). An investigation into the effect of audit quality on accounting conservatism in companies listed in Tehran stock exchange. International Letters of Social and Humanistic Sciences, 50, 107-117.Paulo, I.I.S.L.M., Cavalcante, P.R.N. & Paulo, E. (2013). The Relationship between Auditing Quality and Accounting Conservatism in Brazilian Companies. Journal of Education and Research in Accounting. 7(3), 293-314.Ruch, G. & Taylor, G. ( 2015). Accounting Conservatism: A Review of the Literature. Journal of Accounting Literature, 34, 17-38.Sayyar, H., Basiruddin, R., Rasid, S. Z. A. E. & Mohamed A. (2015), The Impact Of Audit Quality On Firm Performance: Evidence From Malaysia, International Business School, University Teknology Malaysia.Soliman, M.M. (2014). Auditing quality characteristics and accounting conservatism: An empirical study of the listed companies in Egypt. Corporate Ownership and Control. 11(2), 352-361.Tuan, K. (2016). Denetim Komitesi Özellikleri ve İhtiyatlılık Arasındaki İlişki: Borsa İstanbul Örneği. Muhasebe ve Denetime Bakış, 15 (47), 115.Vardar, G. Ç. (2018). Uluslararası Muhasebe/Finansal Raporlama Standartlarının Koşullu Ve Koşulsuz İhtiyatlılık Uygulamaları Açısından Değerlendirilmesi: Finansal Tabloların İhtiyatlılığı Üzerindeki Etkisine İlişkin Bir Literatür Araştırması. Muhasebe Bilim Dünyası Dergisi, 20, 150-172.Watts, R. L. (2003). Conservatism in accounting part I: explanations and implications. Accounting Horizons, 17(3), 207-221.Yeganeh, S., Kangarlouei, J., & Motavassel, M. (2012), The investigation of the impact of auditor tenure and audit firm size on accounting conservatism in financial reporting of firms listed in Tehran Stock Exchange. International Journal of Finance and Accounting, Vol. 1 No. 3, pp. 38-44.Yerdelen Tatoğlu F. (2012). Stata Uygulamalı İleri Panel Veri Analizi, Beta Yayınları: İstanbul.Ziaee, M. (2014). The Effect Of Audit Quality On The Performance Of Listed Companies In Tehran Stock Exchange. International Letters of Social and Humanistic Sciences, Vol:21, (36- 44).Zureigat, M. (2011). The Effect Of Ownership Structure On Audit Quality: Evidence From Jordan. International Journal Of Business And Social Science, Vol: 2, No: 10, (38-46).
There are 1 citations in total.
Details
| Primary Language | Turkish |
|---|---|
| Journal Section | Articles |
| Authors | |
| Publication Date | October 27, 2019 |
| Submission Date | August 29, 2019 |
| Published in Issue | Year 2019 2019 Additional Number |
