Earnings Management Around Insider Trading: Discretionary Accruals and Asset Sales
碩士 === 淡江大學 === 會計學系碩士班 === 94 === Abstract: On the premise of insider self-interest, this research examines the hypothesis that insiders manage the earnings by discretionary accruals (DA) and asset sales (AS) around insider trading. Our empirical results indicate that the average DA and AS in pre-s...
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| Format: | Others |
| Language: | zh-TW |
| Published: |
2004
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| Online Access: | http://ndltd.ncl.edu.tw/handle/70109399975856576043 |
| Summary: | 碩士 === 淡江大學 === 會計學系碩士班 === 94 === Abstract:
On the premise of insider self-interest, this research examines the hypothesis that insiders manage the earnings by discretionary accruals (DA) and asset sales (AS) around insider trading. Our empirical results indicate that the average DA and AS in pre-selling period are both statistically larger than those in post-selling period. Moreover, in post-trading period, the average DA and AS for the insider-buying sample are both larger than those for the insider-selling sample. Both evidences lend support to our hypothesis. We further apply Simultaneous Equations Model to examine the endogenous relationship between DA and AS. We find a positive association between DA and AS in the case of abnormal insider trading, suggesting a complementary relationship between these two instruments on the purpose of earnings management for insider trading.
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