The Relationship between Information Transparency and Earnings Management-A Study of Enlisted Companies in Taiwan

• Main Authors: Lin Chin Hua, 林錦華
• Other Authors: Jinn-Yang Uang
• Format: Others
• Language: zh-TW
• Published: 2007
• Online Access: http://ndltd.ncl.edu.tw/handle/59469181266115000299

碩士 === 中國文化大學 === 會計研究所 === 95 === Since the Enron fraud has imploded in 2001, how to improve corporate governance, enhance information transparency, and establish an anti-corruption system to reduce earnings management and manipulation in financial reporting becomes the most crucial task for a corporation. To strengthen Taiwan’s enterprise information disclosure and corporate governance the Securities & Futures Institute (SFI) implemented an information disclosure and evaluation system for all publicly traded and OTC companies listed in TSEC and pub-lished the results of information disclosure and evaluation in 2003. This empirical study investigates the relationship between information transparency and earnings management behavior so as to observe the influence by evaluation system produced by SFI. Empirical results show that the more information transparency com-panies they make the less earnings management behavior they act. However, the dis-crimination of transparency and the profit or loss of a company could easily affect the the relationship between information transparency and earnings management. We have to control the fact that the profit or loss of a company and make the discrimination of transparency precisely to find the relationship between the two. In addition, this em-pirical study show that the more voluntary information transparency companies with profit they make the less earnings management behavior they act. The above inference can not apply to companies with loss.