We examine auditor independence in the banking industry by analyzing the relation between fees paid to the auditors and the extent of earnings management through loan loss provisions (LLP). We also examine whether this relation differs across large banks whose managements are required under the...

We examine auditor independence in the banking industry by analyzing the relation between fees paid to the auditors of banks and the extent of earnings management through loan loss provisions. We also examine whether this relation differs across large banks whose managements are required under...