The Relationship between Earnings Management and Accounting Conservatism in Different Life-Cycle Stage

碩士 === 靜宜大學 === 會計學系 === 99 === Abstract The is no doubt that conservatism is the key principle in accounting. FASB (1980) argued that "it should choose a conservative statement of net income and assets without exaggerated when measure differences occurred." But conservative accounting mig...

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Bibliographic Details
Main Authors: Yu-Hsien Chien, 簡煜賢
Other Authors: Yueh-Yu Hsu
Format: Others
Language:zh-TW
Published: 2011
Online Access:http://ndltd.ncl.edu.tw/handle/80567736427780826187
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Summary:碩士 === 靜宜大學 === 會計學系 === 99 === Abstract The is no doubt that conservatism is the key principle in accounting. FASB (1980) argued that "it should choose a conservative statement of net income and assets without exaggerated when measure differences occurred." But conservative accounting might affect the income statement on earnings quality. Hence, the purpose of this study is to investigate, under different life cycle, the enterprise’s conservatism and whether it will be affected by company’s growth, earnings management or different characteristics. In this study, from 2000 to 2009, Taiwan’s listed companies were used as the sample matrix. A total of 3,700 samples, were selected to conduct relevant research. Basu (1997) earnings and stock price return model were used to measure accounting conservatism and to verify: 1. Under different business life cycle, compare high-growth companies with low-growth companies, whether the extent of their conserveatism exist significant differences. 2. Under different business life cycle, compare high earnings management companies with low earnings management companies, whether the extent of their conservatism have significant differences. 3. Compare accounting conservatism with earnings management, whether there will have significant differences when companies with different life cycle. 4. Under different business life cycle, different characteristics will affect their conservatism. The empirical results show that the company’s accounting conservatism, under different business life cycle have significant difference. Different variables such as growth, high ruling income as have certain influence on their conservatism.