The Association between the Corporate Ownerships and the Accrual Mispricing

• Main Authors: Yu-Hao Su, 蘇昱豪
• Other Authors: 許永聲
• Format: Others
• Language: zh-TW
• Online Access: http://ndltd.ncl.edu.tw/handle/39561700667296784820

碩士 === 國立中興大學 === 會計學研究所 === 96 === Accrual pricing is profoundly related to earnings management. When earnings management is severe, financial reports lack credibility and accrual component of earnings isn’t reliable. It makes that stock market misprices the accrual component of earnings. Therefore, this study investigates whether stronger governance structure (deviation between controlling right and cash flow right; more controlling shareholder’s stock hypothecating ratio; and more board seats controlled by controlling shareholder) makes the accrual component of earnings be more credibility, and the stock market can precisely price the accrual component of earnings and corporate governance. The empirical results show that, under stronger governance structure, income-increasing accruals are more persistent and income-decreasing accruals are less persistent. It shows that if current accuuals are positive, next earnings will be high. If current accuuals are negative, next earnings will be low less. However, the stock market can’t precisely price the accrual component of earnings and corporate governance.