Stock Option Compensation and Earnings Management

• Main Authors: Yu-Mei Fan, 范玉梅
• Other Authors: Jia-Xun Jiang
• Format: Others
• Language: zh-TW
• Published: 2009
• Online Access: http://ndltd.ncl.edu.tw/handle/14051524220658902924

碩士 === 輔仁大學 === 會計學系碩士班 === 97 === The thesis examines the relationship between executive stock option compensation and earnings management. The sample consists of observations selected from listed and over-the-counter non- financial companies in Taiwan from 2005 to 2007. The empirical results are summarized as follows. 1. When the stock option will be granted to executive in the following year, the magnitude and the likelihood of negative earnings management will increase if the top executive also take the position of the chair of the board. 2. When the stock options granted to executive will be vested in the following year, the magnitude of positive earnings management will increase.