| Summary: | 碩士 === 東吳大學 === 會計學系 === 89 === ABSTRACT
For the purpose of improving the forecast value of financial information, the Security and Futures Committee (SFC) began to form the system of enforcing firms to disclose their financial forecast information from 1993.The SFC enact a regulation which stipulate that when the difference between actual and forecasted data is over the threshold of 20% of gross profit or 20% of earnings before tax, firms must renew their financial forecast data.
The main purpose of this study is to find the relation between the renewal of financial forecast and earnings management. Earnings management is captured by discretionary accruals that are estimated using the Jones 1991 model. Using firms listed in Taiwan Stock Exchange from 1997 to 1999, we collect 1,020 samples. The primary result as follows:
1.Firms have renewed financial forecast data are more likely managing earnings. The renewed frequency has a negative relationship with the degree of earning management.
2.Firms with renewed financial forecast data upward have larger discretionary accruals then that with renewed downward.
3.In order to evade the restriction of renewed frequency, the seasoned equity offering firms enlarge the magnitude of renew financial forecast. The accuracy of financial forecast data of seasoned equity offering firms is actually not improved.
4.The financial forecast data of IPO firms is more accurate then others. But we can’t dispel the doubts that IPO firms manage earnings to improve the accuracy of financial forecast data.
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