| Summary: | 碩士 === 國立臺灣大學 === 財務金融學研究所 === 92 === In this study we use three controlling proxies as the power to control a firm：CR (cash flow right), bias A (voting right minus cash flow right) and bias B( percentage in board of directors the ultimate controlling shareholder occupied minus cash flow right) to test the relation between corporate governance and earnings management in Taiwan. We find that among three of the controlling proxies, only Bias B has consistent result. After dealing with Bias A by ranking, we can also find significantly positive relation. But CR is not significant in all conditions. Therefore we can conclude that, first, firms with larger bias B tend to have higher earnings management. Second, in Taiwan, bias B is more effective than bias A and cash flow right in detecting possible earnings management.
|
|---|
