An Empirical Investigation of Relationship Between Financial Conditions, Operating Performance and Earnigns Manipulation of Newly Listed Firms in Taiwan

• Main Authors: Chen,Miao-Ju, 陳妙如
• Other Authors: Yeh,Shu
• Format: Others
• Language: zh-TW
• Published: 1996
• Online Access: http://ndltd.ncl.edu.tw/handle/87029251979118633633

碩士 === 國立臺灣大學 === 會計學研究所 === 84 === The purpose of this thesis is to investigate whether or not firms manipulate earnings through individual discretionary accruals or overseas affiliated sales before listed in Taiwan Stock Exchange. This study further examines the change of financial conditions and operating performance through the years before and after listed, and also the relationship between operating performance and earnings manipulation. Research data includes 82 firms newly listed in Taiwan from 1990 to 1993. Observation period is six years - from the third year before listed to the second year after listed. Random walk model is performed to estimate the components of variables - acc- ount receivable, inventory, account payable and affiliated sale. The conclusions of this thesis are as follows﹕ A. Account receivable and inventory do not increase before listed, but both increase significantly after listed. Inventory and account payable decrease significantly in the year before listed and reverse after listed. Firms might control inventory and account payable in a very low level before listed to show better financial conditions. B. The overseas affiliated sale rate increases significantly from the second year before listed. The evidence suggests that managers manipulate earnings through overseas affiliated sales. C. With four performance indicators, the operating performance of sample firms grows stable before listed, but fall significantly since the year that was listed. It is shown that newly listed firms actually performed worse after listed. D. Empirical result shows no obvious relationship between earnings performance and individual discretionary accruals. So there is no evidence supporting firms manipulate earnings through individual discretionary accruals before listed in Taiwan.