The Association among Growth Opportunities , Insider Trading and Earnings Management.

• Main Authors: Yun-Han Kao, 高郁涵
• Other Authors: Chin-ChenYeh
• Format: Others
• Language: zh-TW
• Published: 2004
• Online Access: http://ndltd.ncl.edu.tw/handle/02390276932686582919

碩士 === 淡江大學 === 會計學系碩士班 === 94 === Insider trading is always the focus.Prior literature provides a theoretical basis to empirical studies of insider trading and earnings management (Elitzur and Yaari,1995; Trueman,1990).But in Taiwan,there is less study that examine the relationship between insider trading and earnings management.And there is also less study that use growth opportunity as an important variable. The purpose of this study is to examine the association among growth opportunities,insider trading and earnings management.We investigate into the insider trading of the companies in stock market between 1999 and 2004. Our empirical results are as follows.(1)In insider buying sample, we find that when the insider intend to buy their owenership,they would adjust DAs to decrease earnings;(2)In insider selling sample, we find that when the insider intend to sell their owenership,they would adjust DAs to increase earnings;(3) When the company is with high growth opportunity, the insider is tend to buy .To the contary, when the company is with low growth opportunity, the insider is tend to sell; (4)When the company is with high growth opportunity, the insider would adjust discretionary accruals (DAs) to increase earnings; to the contary, when the company is with low growth opportunity, the insider would adjust DAs to decrease earnings. (5)After controlling the growth opportunities,the empirical results support the association among growth opportunities,insider trading and earnings management more.