| Summary: | 碩士 === 國立高雄第一科技大學 === 財務管理所 === 94 === Abstract
Earnings Management is a popular issue in the capital market. Since Positive Accounting Research is provided by scholars on abroad, earnings management research forms a trend in academic circles. In recent years, after enterprises have continuously happened financial crisis, the events not only attract scholars to research deeply but also explore the motives of earnings management in these failure enterprises in Taiwan. In the previous researches, there are three main instruments of earnings management, first, the choice of accounting Method; second, the control of transaction date; third, discretionary accruals. These results show the effect of discretionary accruals is better than the other methods, but accounting methods are unable to achieve the effect of earnings management. As a result, in order to aim the purpose of earnings management, the management makes use of discretionary accruals to obtain the objective of smoothing income and big bath. The paper makes use of Modified-Jones Model to estimate the real discretionary accruals. By using continuous operating income and discretionary accruals, we observe the phenomenon of smoothing income in listed companies in Taiwan. Finally, the paper explores the motivations of smoothing income by past, current, future earning, Debt covenant or debt/equity hypothesis and Political process hypothesis.
We find that to achieve the purpose of earnings management, the management in listed firms usually use discretionary accruals to smooth income. In addition, when the management uses discretionary accruals, they also consider past earning, current earning, Debt covenant or debt/equity hypothesis and Political process hypothesis.
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