The Study of the Releation Between the Stock Price and Earning Managment of the Crossing-Investment Bankruptcy

• Main Authors: Hung-Ming Lin, 林宏明
• Other Authors: Jungpao Kang
• Format: Others
• Language: zh-TW
• Published: 2002
• Online Access: http://ndltd.ncl.edu.tw/handle/67389170311832975203

碩士 === 東吳大學 === 會計學系 === 90 === Abstract Since 1998 Taiwan has experienced effects from global financial crisis, many firms could not handle such extraordinary environmental change causing bankruptcy. Based upon the models of bankruptcy firms, literature showed these sort of firms usually have cross investment activities, involving substantial debt leverage. This study suspects these sort of bankruptcy firms manage their earnings in order to cover their risky financial activities. Thus, this study uses standard research methodology regarding earnings management to investigate whether the corss-investment bankruptcy firms managed their earnings prior to their bankruptcy. The empirical findings of this study can be summarized as follows: 1.The cross-investment bankruptcy samples does manage their earnings prior to their bankruptcy. 2.The stock price behavior exhibits abnormal positive responses prior to the book close date, for example, prior to December 31. 3.These sample firms show a larger proportion of non-operating gains summarized from their income statement.