| Summary: | 碩士 === 東吳大學 === 會計學系 === 88 === This study is to investigate where companies in Taiwan smooth its income and identify the factors associated with the incidence of income smoothing. The samples comprise 350 companies listed in the Taiwan Stock Exchange during the period 1992 to 1998. Income smoothing is measured with The Income Variability Method and The Variance Ratio Method. In additional, three possible income smoothing objectives are examined in this study. They are income from operations, income before extraordinary items and net income after tax.。
Five hypothesis relating income smoothing to company size, debt financing, profitability, dividend, and CPA audit quality are tested in the study. T-tests, Mann-Whitney-Wilcoxon tests and regression analysis are used to test the relation between smoothing and a set of explanatory variables. The results of this study are as follows：(1)Income smoothing is practiced among listed companies in Taiwan.(2) Debt financing is associated with income smoothing but company size, profitability, dividend, and CPA audit quality is not.
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