An Empirical Study on Relationship between Ownership Structure and Earnings Management

• Main Authors: Jui-Fen Chang, 張瑞棻
• Other Authors: Kuei-Yen Wu
• Format: Others
• Language: zh-TW
• Published: 2003
• Online Access: http://ndltd.ncl.edu.tw/handle/90249228358179766632

碩士 === 輔仁大學 === 管理學研究所 === 91 === The study examines the relationship between insiders’ characteristics, institutional shareholdings and earnings management. Besides, We include the current and expected future performance in research models to see whether performance is a factor to influence managers’ earnings management and also examine whether large institutional shareholdings can actually monitor the managers. We collect 574 companies in Taiwan’s Stock Exchange from 1998 to 2001. The study uses two models as the measure of earnings management: discretionary accounting accruals and gain/loss form non-operative activities. The empirical results of this study are summarized as follow: 1.There is earnings management for the companies in Taiwan Stock Exchange. 2.Insiders’ shareholdings and earnings management are related. But there is no relation between whether CEO is also a member of the board and earnings management. 3.For the whole sample, executives will defer the current earnings to the next period when the current performance is good and the future performance is bad. 4.Institutional shareholders of the companies in Taiwan Stock Exchange do not monitor the executives’ behaviors of opportunistically managing earnings. However, institutional shareholdings are related to executives’ earnings management. Different natures and aims of different institutions may have different influences on executives’ earnings management.