Earnings Management and the Value-relevance of Financial Statement - the empirical evidence for China Capital Market

• Main Authors: Lin, Yi-Yin, 林怡吟
• Other Authors: 范宏書
• Format: Others
• Language: zh-TW
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/84352940738366807052

碩士 === 輔仁大學 === 會計學系碩士班 === 98 === In China, the A-share listed firms must disclosure the People's Republic of China's generally accepted accounting principles (PRC-GAAP)-base financial reports. Differently, the B-share listed firms must disclosure the International Financial Reporting Standards (IFRS)-base financial reports. All listed firms have to release IFRS-base financial reports after 2007 in China. This study aims to examine the impact of earnings management on the value-relevance of financial statement information. I use cross-sectional Jones model to proxy the behavior of earnings management. Our main findings are summarized as follows: First, the value-relevance of earnings is decreased and the value-relevance of book value of equity is increased when firms manipulate earnings via discretionary accruals. Second, investors consider that the impact of earnings management on the value-relevance of financial statement information is decreased when firms manipulate earnings via discretionary accruals under IFRS.