Vertical Integration, CPA Characteristic, and Earnings Management of Business Groups

• Main Authors: Chih-Chi Chen, 陳志奇
• Other Authors: Ruey-Ching, Lin
• Format: Others
• Language: zh-TW
• Published: 2009
• Online Access: http://ndltd.ncl.edu.tw/handle/96462g

碩士 === 銘傳大學 === 會計學系碩士班 === 97 === This study examines whether the earnings management behavior of a business group is influenced by the degree of vertical integration between the component companies within a business group (hereafter vertical integration strategy), and whether the earnings management behavior of a business group is alleviated when component companies of a business group are audited by the same CPA firm? We use the sample comprised of listed, OTC, and public offering firms in Taiwan during 2000 to 2007. The empirical results show that the earnings management behavior of a business group is influenced by the vertical integration strategy. On the other hand, when the vertical integration strategy is used by a business group, we find limited evidence that the earnings management behavior is alleviated by the same (Big) CPA firm.