An Empirical Examination of the Relationship between Earnings Management and Corporate Governance in Emerging Markets

• Main Authors: Brian Tsai, 蔡昇峰
• Other Authors: CHIH, HSIANG-LI
• Format: Others
• Language: zh-TW
• Published: 2003
• Online Access: http://ndltd.ncl.edu.tw/handle/14410167719947875061

碩士 === 國立臺北大學 === 合作經濟學系 === 91 === The purpose of this study is to examine the relationship between corporate governance and earnings management in the emerging market. The data used in this research are from the CLSA report (2002) that includes corporate governance rankings on 495 companies in 25 countries. In order to include firm-level accounting data, we merged the CLSA data with Worldscope data (Feb. 2000) and our sample was reduced to 244 firms in 13 countries. Using experimental methods we find three main results. First, the results show that managers will engage in more earnings management in French-civil-law countries than in common-law countries. Secondly, it will improve corporate governance performance, if the country give investors more protection and enforce law stronger. Thirdly, we conclude that earnings management is less likely to occur or occurs less often in companies whose boards include more independent outside directors.