The Impacts of Cronyism and Board Operation on Accounting Conservatism

• Main Authors: Ya-Ling Jiang, 江亞陵
• Other Authors: 許永聲
• Format: Others
• Language: zh-TW
• Published: 2017
• Online Access: http://ndltd.ncl.edu.tw/handle/84577101025191988998

碩士 === 國立中興大學 === 會計學研究所 === 105 === The paper evaluates the impact of board operation on accounting conservatism of financial statements, and also considers whether the effects of cronyism influences board operation on accounting conservatism. We use Cscore proposed by Khan and Watts (2009) to measure accounting conservatism. The observations are collected from Taiwan Stock Exchange during 2010-2015. The empirical results indicate that the independent directors has a positive impact on accounting conservatism. But the multiple directorships of independent directors may weaken the positive relationship between the independent directors and accounting conservatism. The study further finds that cronyism may weaken the positive relationship between the independent directors and accounting conservatism. However, when the cronyism exists in the company, the multiple directorships of independent directors has a positive impact on accounting conservatism.