Faithin Omaha eBook Collection

Download or read book The Prospector - Defender Strategy, Auditor Industry Specialization, Earnings Management Through Real Activities and Earnings Quality written by Wuryan Andayani and published by . This book was released on 2009 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This study examined the influence of the company prospector-defender strategy and auditor industry specialization towards the earnings management through real activities and earnings quality. An important finding in this study shows that the auditor specialization and the company's prospector strategy could restrict the earnings management. The prospector strategy was done by the companies which did not do earnings management. On the contrary, defender strategy was done by companies which did earnings management. Another finding shows that the auditor industry specialization influenced the earnings response coefficient (ERC), cummulative abnormal return (CAR) and investors' response. Besides the auditor industry specialization, prospector and defender strategies, other factors which influenced ERC were leverage, company size, company's stock return, beta and market return. The interaction among prospector and defender strategies and unexpected earnings influenced both the CAR and the investors' response. This was probably because the investors pay attention to the strategy used by the company.