The Convertible Bonds Financing and Earnings Management

• Main Authors: Li-Ting Huang, 黃莉婷
• Other Authors: Jia-shiunn Jiang
• Format: Others
• Language: zh-TW
• Published: 2009
• Online Access: http://ndltd.ncl.edu.tw/handle/16889995530310824959

碩士 === 輔仁大學 === 會計學系碩士班 === 97 === This thesis examines whether the issuance of convertible bonds (CB) results in accruals earnings management during the year of redemption and maturity, as well as prior to the year of issuance, using a sample selected from Taiwan listed and OTC firms which had issued CBs during the period from 2000 to 2003. I find that firms having issued convertible bonds had significantly positive discretionary accruals during the life of CBs and the magnitude of earnings management was particularly pronounced during the year of redemption or maturity. I also find that those firms having worse credit ratings or having lower liquidity had higher incentive to engage in earnings management to avoid defaults during the year of maturity.