| Summary: | 碩士 === 國立政治大學 === 會計研究所 === 93 === This study investigates the influence of earnings management on credit rating. Using Ordered Probit Model, this study tests whether earnings management of listed companies (emerging stock included) effects Taiwan Corporate Credit Risk Index (TCRI).
This study finds that earnings management does affect credit rating. In addition, it suggests that earnings with income-increasing discretionary accruals have more opportunity for getting downgradings than earnings with income-decreasing discretionary accruals through analysis of marginal effects. That is, the credit analysts treat earnings management in a different way when rating companies.
Moreover, this study also finds that the marginal effects of income-increasing discretionary accruals of increasing opportunity for getting downgradings are larger than the marginal effects of opportunity for getting unchanged and upgradings. Similarly, the marginal effects of income-decreasing discretionary accruals of decreasing opportunity for getting downgradings are larger than the marginal effects of opportunity for getting unchanged and upgradings.
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