Relationship Between Non-operating Earnings and Corporate Performance - Take Family Firms as Example

• Main Authors: Cheng-Yu Tsai, 蔡承育
• Other Authors: Chih-Wei, Wang
• Format: Others
• Language: zh-TW
• Published: 2018
• Online Access: http://ndltd.ncl.edu.tw/handle/3x96v2

碩士 === 國立中山大學 === 金融創新產業碩士專班 === 106 === Companies usually make use of non-operating earnings to manipulate earnings because of their discontinuity, such as much scandal in the past. So it is always labeled as speculative when a company’s non-operating earnings account for a large proportion of its profit. This paper uses the listed companies in Taiwan from 1996 to 2016 excluding public enterprises and financial industries to examine the relationship between non-operating gains and losses and corporate performance. According to the fact that the percentage of family firms in Taiwan’s public entities is about 70% and the unique of their board composition and ownership structure, the paper also explore whether the diversification will be one of the means family members make use to manipulate the corporate earnings. Empirical evidence shows that non-operating gains and losses have a positive effect on the corporate performance. According to the results of the Mann-Whitney U test, family firms or not doesn’t affects a company to make more non-operating earnings.