A model to assess the relationship between management opportunism and auditor reaction. Si

A study by Adela Deaconu investigates earnings management and auditor reactions using financial restatements. The empirical approach uses a self-constructed model to detect the influence of financial restatements on discretionary accruals. This research provides a tool for assessing the relationship between management opportunism and auditors' reactions.

Use Cases

• Modeling the relationship between financial restatements and discretionary accruals based on the described empirical approach.
• Investigating earnings management practices using the self-constructed model mentioned in the description.
• Assessing management bias in accounting estimates and policies as suggested by the computed discretionary accruals.
• Evaluating the potential of financial restatements to decrease management opportunism as per the study's purpose.

Strengths

• Study provides a specific tool for overcoming deficiencies in auditing processes related to accounting estimates.
• Model is based on an empirical approach using a self-constructed methodology.

Limitations

• Row count is unknown, which may limit suitability assessment.
• Column-level documentation is absent; field semantics must be inferred after download.
• Data may reflect geographic bias inherent to the sample of Brazilian companies listed on NYSE.

Provenance

Source

Adela Deaconu

Collection Method

Empirical approach using a self-constructed model, simulation on financial restatements.

Geography

Brazilian companies listed on the New York Stock Exchange (NYSE)