Akademik Veri Yönetim Sistemi
VIII. INTERNATIONAL SYMPOSIUM ON ACCOUNTING AND FINANCE, Bursa, Türkiye, 25 - 26 Temmuz 2025, ss.118-125, (Tam Metin Bildiri)
ABSTRACT The rapid globalization of commercial activities has necessitated the efficient functioning of capital markets worldwide. The effective operation of these markets relies heavily on the transparent and reliable reporting of financial statements. One of the indicators reflecting the faithful representation of financial statements is accrual quality. Accrual quality refers to the degree to which accounting accruals accurately reflect future cash flows—in other words, how well they predict those flows. Although various models have been proposed in the literature to measure accrual quality, no universally accepted method has been established. This study employs a hybrid model that combines the foundational approach of Dechow and Dichev (2002) with the enhancements proposed by Francis et al. (2005) and Kothari et al. (2005), which are widely used in the literature. The primary aim of this research is to examine whether the type of audit firm—specifically, international Big Four audit firms (PwC, Deloitte, KPMG, EY) versus other audit firms—has a significant effect on the accrual quality of audited companies. The study analyzes data from 49 manufacturing companies listed on Borsa Istanbul (BIST) over the period 2021–2024. The data were analyzed using panel data methods via STATA 17. In the empirical model, the dependent variable is scaled accrual quality, while the independent variables include the annual change in revenues (scaled_Δrevenue), property, plant, and equipment (scaled_ppe), and return on assets (ROA). The results indicate that ROA has a positive and statistically significant effect on accrual quality across both audit firm groups. Additionally, the annual change in revenues is statistically significant only for firms audited by Big Four firms, suggesting that higher audit quality contributes to more transparent and predictable financial reporting. On the other hand, property, plant, and equipment were found to have no statistically significant impact on accrual quality in either group. Overall, the study finds no statistically significant relationship between audit firm type and accrual quality.