Corporate Governance and Earnings Management： An Empirical Study of Taiwanese Listed Electronic Companies

• Main Authors: CHUNG-YU HOU, 侯重宇
• Other Authors: 羅進水
• Format: Others
• Language: zh-TW
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/8w7982

碩士 === 長榮大學 === 經營管理研究所 === 98 === The frequent occurrence of serious financial frauds has made the issue of corporate governance quite important in recent years. Only with sound governance mechanism can a company have a sound financial structure and long-term competitive power; therefore, corporate governance is a key factor for business success or failure. In this paper we apply Modified Jones Model to study the relationship between corporate governance and earnings management and examine seven variables including “managers holding rate”, “supervisory board holding rate”, “board chairman’s additional post”,” certificates from four major accounting firms”,“scale of governing board”, “share holdings of foreign institutional investors” and“substantial shareholders’ holdings”. The sample data include 1871 listed electronic corporations from 2003 to 2008. Empirical results showed that among variables of internal and external corporategovernance, the “sice of board”, “supervisory board shareholding”, “manager shareholding” and “shareholding of foreign institutional investors” all presented significant effect on earnings management, but the “board chairman’s dualism”, “major shareholders’ shareholding” and “auditing from four major accounting firms”didn’t show remarkable effect. This research found that accountants and institutional investors could partly promote earning management besides their partial inhabiting influence.