The relation between auditors' fees for nonaudit services and earnings management

• 成果类型: Article
• 署名作者: Frankel, RM; Johnson, MF; Nelson, KK
• 署名单位: Massachusetts Institute of Technology (MIT); Michigan State University; Stanford University
• 刊物名称: ACCOUNTING REVIEW
• ISSN/ISSBN: 0001-4826
• DOI: 10.2308/accr.2002.77.s-1.71
• 发表日期: 2002
• 页码: 71-105
• 关键词: Incentives; IMPACT

摘要

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.