The Relative Importance of Meeting Various Thresholds on Earning Management

• Main Authors: Han-Hua Chen, 陳翰華
• Other Authors: George Lin
• Format: Others
• Language: zh-TW
• Published: 2009
• Online Access: http://ndltd.ncl.edu.tw/handle/24061852012777673283

碩士 === 國立中正大學 === 會計與資訊科技研究所 === 97 === The purpose of this research is to investigate the relative importance of meeting various thresholds on earning management. Our study use three financial thresholds:(1) Dividend thresholds (PYD), (2) Break-even thresholds (ZERO) and (3) Prior year earning thresholds (PYE). Our study’s samples, from 1998 to 2007, consist of listed and OTC listed company in Taiwan Stock Exchange. And all of ours variable like Modified Jones Model needs variables, prior year dividend and prior year earnings to test sample of firms-years obtained from Taiwan Economic Journal (TEJ). The empirical finding s include the following： 1. When pre-managed earnings fail meet all of『dividend thresholds』,『Break-even thresholds』and 『prior year earning thresholds』, the manager will managing upward to 『Break-even thresholds』 2. When pre-managed earnings fail meet both of『dividend thresholds』,『Break-even thresholds』and『prior year earning thresholds, the manager will managing upward to 『dividend thresholds』 3. When pre-managed earnings only fail meet 『dividend thresholds』or『prior year earning thresholds, the manager will managing upward to 『dividend thresholds』