The Impact of Foreign Investment on the Choice of Earnings Management Behaviors

• Main Authors: Pei-Ju Chin, 秦霈如
• Other Authors: 許永聲
• Format: Others
• Language: en_US
• Published: 2012
• Online Access: http://ndltd.ncl.edu.tw/handle/80247264926900198206

碩士 === 國立中興大學 === 會計學研究所 === 100 === This paper examines the choice of earnings management behaviors when firms have incentives to manipulate earnings. The sample companies are obtained from 2003 to 2010, and the main discussion is the substitution among accruals earnings management, real earnings management, and classification shifting. And the paper further examines whether foreign investment affect the substitution among the three earnings management methods. Besides, the impacts of information transparency and investor protection on the substitution are also the issues the paper wants to confirm. The empirical results show that there are substitution between accruals earnings management and classification shifting, real earnings management and classification shifting respectively. And foreign investment is likely to increase the degree of the substitution among earnings management methods. Moreover, the supervision mechanism of foreign investment, which is measured as investor protection, is likely to further increase the degree of the substitution among earnings management methods.