| Summary: | 碩士 === 國立臺中科技大學 === 會計資訊系碩士班 === 103 === This paper examines the relationship among earnings management (EM), financial performance and firm life cycle (LC) by using 10,788 firm-year observations from the listed companies in Taiwan during 1989 to 2013. Prior studies explore the relationship between LC and EM or performance and EM obtaining mixed conclusions. Contrary to the prior study, this study using the financial performance factors of DuPont explores: (1) Whether firms under different LC have diverse performance, (2) Whether firm under different LC has saliently diverse behavior of EM, (3) Are there mediating effects of DuPont indicators on the relationship between LC and EM. The results are as follows: (1) The performance of firm under growth cycle is worse than those of firm under mature or decay. The asset turnover (leverage rate) of firm under growth cycle is more than those of under mature or decay. (2) The EM of firm under growth cycle is inclined to increase earnings, while the EM of firm under mature cycle is inclined to decrease earnings. (3) Including return on equity and asset turnover for growth firm reduces the relationship between life cycle and EM, while no such impact exists under mature or decay cycles.
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