IDEAS home Printed from https://ideas.repec.org/a/ids/ijbglo/v25y2020i1p73-94.html
   My bibliography  Save this article

Reputation of external directors, auditors and earnings management

Author

Listed:
  • Aphichet Chaiwut
  • Ravi Lonkani
  • Chaiwuth Tangsomchai
  • Suchanphin Suwanaphan

Abstract

External directors and auditors are crucial elements in determining corporate governance. The efficiency of monitoring and controlling mechanisms depends upon the effectiveness of external directors and auditors. However, the efficiency of each external director and auditor is varies. In this research, the key question is whether the reputation of external directors and auditors reflects upon the potentiality and the perceptions of monitoring and controlling in a consistent manner or not. If the reputation of external directors and auditors reflects the potentiality of monitoring, this may mitigate earnings management. Nonetheless, if reputation represents the busyness of external directors and, auditors, the results occurring would be inconsistent with the aforementioned hypothesis. In this respect, reputation was measured by the number of companies in which each external director and auditor had been appointed. According to the results, it was disclosed that the more the reputation of an external director or auditor leads to increasing of burden on external directors and auditors. As a result, this affects efficiency in controlling and monitoring the operating processes of the management.

Suggested Citation

  • Aphichet Chaiwut & Ravi Lonkani & Chaiwuth Tangsomchai & Suchanphin Suwanaphan, 2020. "Reputation of external directors, auditors and earnings management," International Journal of Business and Globalisation, Inderscience Enterprises Ltd, vol. 25(1), pages 73-94.
    • Handle: RePEc:ids:ijbglo:v:25:y:2020:i:1:p:73-94
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=107834
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sayaf Algrady & Xie Xiaojun, 2022. "Influential Factors Affecting Earnings Management in Public Listed Companies: A Conceptual Model," International Review of Management and Marketing, Econjournals, vol. 12(2), pages 1-10, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijbglo:v:25:y:2020:i:1:p:73-94. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=245 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.