| Summary: | 碩士 === 輔仁大學 === 會計學系碩士班 === 105 === Social networks or social network research have become more and more important in our society. However, in accounting research only a few studies examine this emergent issue. This study is the first one that investigates both direct and indirect partners’ network within CPA firms, and applying the social network analysis techniques to test the relationships between partners’ networks within CPA firms and the earnings quality. In the meanwhile, this study expects the empirical results can fulfill the gap in the past literatures.
This study collects the publicly traded corporations which audited by the big four CPA firms during 2011-2015 as a sample, applying the absolute values of discretionary accruals as proxy variables, and introducing the techniques of social network, to identify the relationships between partners’ network and enterprise earnings quality. Because of the partners’ network are extensive, hence, not only the direct linkages can influence the independence and professionalism for CPAs, the indirect linkages can also generate implications on enterprise earnings quality. Therefore, this study tests the direct and indirect network simultaneously to verify the research expectations.
Empirical results show that the absolute values of discretionary accruals are significantly negatively correlated with the direct and indirect partners’ network in the CPA firms. These findings implied that auditors with a better co-signed network in the audit firms could provide a better audit quality, and improve their clients’ financial reporting quality.
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