Internal and External Corporate Governance and Earnings Management

• Main Authors: GUO, JIN-MING, 郭津銘
• Other Authors: CHAO, CHIA-LING
• Format: Others
• Language: zh-TW
• Published: 2017
• Online Access: http://ndltd.ncl.edu.tw/handle/hjv8wc

碩士 === 國立中正大學 === 會計與資訊科技研究所 === 105 === This study explores three research issues: (1) the relation between internal and external governance; (2) the association between accrual-based earnings management and real activity manipulation; and (3) whether the interaction between internal and external governance mechanisms affects the use of the aforementioned two types of earnings management methods. The empirical results of the first issue show that internal governance is positively related to external governance, suggesting that the use of external and internal governance mechanisms provides a company with a more comprehensive monitoring mechanism. The empirical results of the second issue document that accrual-based earnings management and the real activity manipulation serves as complements and their magnitudes are determined simultaneously. I find similar results when classifying real activity manipulation into abnormal production costs and abnormal discretionary expenditures, revealing that company will use multiple earnings management strategies to achieve earnings targets. The empirical results of the last research issue indicate that both internal and external governance mechanisms will constrain the simultaneous use of multiple earnings management strategies to meet its earnings goal. The part of the evidence shows a more robust internal and external corporate governance mechanism will inhibit the condition that management implement a variety of earnings management strategies at the same time.