Excess Ultimate Owners Compensation and Financial Restatements

• Main Authors: Shi-Jun Ni, 倪士鈞
• Other Authors: Wen-Jing Chang
• Format: Others
• Language: zh-TW
• Published: 2007
• Online Access: http://ndltd.ncl.edu.tw/handle/32175472009702221226

碩士 === 國立彰化師範大學 === 會計學系 === 95 === This research examines the effect of excess ultimate owners compensation on financial restatements. When ultimate owners control corporation effectively through pyramid structures, and cross-holdings among firms, they can get low cash flow right and high control right . This situation is provide the incentive to denationalize corporation resources and to extort minority shareholder by ultimate owners, and ultimate owners can use their control power to manipulate the number of financial statements for camouflage the encroachment。Therefore, this research expects that ultimate owners would manipulate the number of financial statements for getting excess compensation. So The financial statements were misrepresentative and will be restated in the future. This research uses ultimate owners compensation data from 1998-2003 to compute excess ultimate owners compensation and discusses the effect of excess ultimate owners compensation in the current year and last year on financial restatements in the next year. The primary result is found that ultimate owners in last year would manipulate financial statements for getting excess compensation. The financial statements were misrepresentative and will be restated in the next year.