The Effect Of Executive Compensation And Corporate Governance On Earnings Management

• Main Authors: Huang, Yuting, 黃鈺婷
• Other Authors: Hsu, Yuehyu
• Format: Others
• Language: zh-TW
• Published: 2012
• Online Access: http://ndltd.ncl.edu.tw/handle/52181686970184373696

碩士 === 靜宜大學 === 會計學系 === 100 === From the Asian financial storm, the United States events such as Enron until Lehman Brothers event that outbreak in recent years, and the investors increasingly rely on corporate governance. Formerly , research pointed out that the better corporate governance, corporate performance is better, but whether the performance is through earnings management operation? Studies have pointed out in recent years, managers due to weak corporate governance and its more favorable to the manipulation of behavior, most of the research in the past discussion on the relevance of company or enterprise performance and earnings management, but few studies have included both the effects of executive compensation and corporate governance on earnings management. For the enterprise earnings management, corporate governance and executive compensation issues that have a considerable number of research documents, however there are many studies of enterprise earnings management reasons, such as：Reitenga and Tearney (2003), Xie (2003). The empirical results show：1、When company's CEO change salary occupies the total salary ratio is higher, then the authority manipulates the extent of earnings management is more significant. 2、When the company's corporate governance more rigorous, company's CEO change salary to total salary is lower than the degree of earnings management associated with the authority. 3、The characteristic factors of ompany's CEO change salary occupies the total salary ratio is higher than the authority the extent of earnings management is more significant. Enterprises increasingly focus on corporate governance, directors of the company with a sound structure, strengthen internal control, the company under the internal and external oversight control system, whether through to executive compensation is required as an incentive reward to improve performance, and operating for the manipulation of earnings management issues, that will really worth discussing. Therefore, this research effects of executive compensation and corporate governance on earnings management.