The Relationship between Bonus of Employee and Eamings Management

• Main Authors: Su-Ya Ro, 羅夙雅
• Other Authors: none
• Format: Others
• Language: zh-TW
• Published: 2009
• Online Access: http://ndltd.ncl.edu.tw/handle/32149672225735261648

碩士 === 國立中正大學 === 會計與資訊科技研究所 === 98 === Taiwan’s enterprises have traditionally used employee bonus scheme as an encouragement tool, rewarding them as motivation. However, it has been regarded as the earnings distribution for a long time, causing managers to pursue own benefits by controlling the earning management. This study is aimed at discussing the relationship between employee bonus and rewards and earnings management. The study showed that there are obvious positive relationship among employee bonus and rewards ratio, debt-to-total asset ratio, share-holding ratio of managers and earnings management, showing that the manager earnings management level will improve because of the employee bonus and rewards earnings. There is no obvious relationship between company size and earnings management, it means the amount of employee bonus is not related to company size, so there is negligible relevance with earnings management. The cash flow from operating activities is negatively associated with earnings management, meaning the increase in cash flow from operating activities will not increase earnings management. Employee bonus takes accounting earnings as the calculation standard. As the study showed, it will entice managers to make moral risks. When enterprises are developing internationally, managers should have the morality, justice and care to reduce the agency cost, strengthen the cooperate government mechanisms and supervise to reduce the behavior of earnings management.