High-Quality Auditors Boost Future Earnings, Curbing Earnings Manipulation
The study looked at how the cost of managing earnings affects future earnings in Indonesian manufacturing companies. They found that having a high-quality auditor can make earnings predictions more accurate, while having a large market share and strong financial health can prevent companies from manipulating their earnings to look better in the future. In simple terms, having a good auditor helps predict future earnings, and strong market share and financial health prevent companies from faking their earnings.