The Influence of Top Management Team Operating Knowledge on Earnings Management of BHCs

• Main Authors: HUANG, TING-HAO, 黃亭皓
• Other Authors: LIN, RUEY-CHING
• Format: Others
• Language: zh-TW
• Published: 2019
• Online Access: http://ndltd.ncl.edu.tw/handle/ecm842

碩士 === 輔仁大學 === 會計學系碩士班 === 107 === The operating experiences and knowledge of top management team have been invaluable assets of the whole enterprise. This research aims to discuss whether the knowledge of top management team has an impact on earnings management behavior. We use listed bank holding companies (BHCs) as samples, and discretionary earnings as the proxy of its earnings management. Through panel regression, we find that the experiences of managers in accounting or law firms have a negative effect on discretionary earnings, which means managers who have such experiences are commonly conservative to financial reports, or are not willing to adjust earnings downward based on tax motivation. Moreover, managers who once served at positions higher than vice president are negatively related to discretionary earnings, suggests that these experiences may make managers become overconfident and move earnings upward to exhibit their great ability to the public. Although managers serve as the core functions of the company are not significantly related to discretionary earnings, the definition of the core functions contains risk control officers, so we also include risk control officers in our research variables. As a result, risk control officers are negatively related to discretionary earnings, which verify the cause that the coefficient of the core functions is negative. As the whole, we conclude that the operating experiences and knowledge of top management team indeed affect the earnings quality.