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Institutional Activism, Auditor’s Choice and Earning Management after the Enron Collapse: Evidence from France

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  • Jamel Azibi
  • Hamza Azibi
  • Hubert Tondeur

Abstract

This paper treats the relation between institutional shareholders, auditor's choice and earning management after the Enron collapse in French context. This context is characterized by the weak of investor protection compared to Common Law countries and the presence of the higher ownership concentration. Three hypotheses are tested around this question. The Empirical results demonstrate that institutional investor has more incentives to control the manager opportunism through the discretionary accruals and influence negatively the appointment of the Big 4 auditors after Enron collapse.

Suggested Citation

  • Jamel Azibi & Hamza Azibi & Hubert Tondeur, 2017. "Institutional Activism, Auditor’s Choice and Earning Management after the Enron Collapse: Evidence from France," International Business Research, Canadian Center of Science and Education, vol. 10(2), pages 154-168, February.
    • Handle: RePEc:ibn:ibrjnl:v:10:y:2017:i:2:p:154-168
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    institutional shareholders; auditor's choice; audit quality; earning management and Enron collapse;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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