Earnings Management and Market Value - Simultaneous Equations Model

• Main Authors: Shin-Sheng Jhuo, 卓世昇
• Other Authors: Chih-Wen Mao
• Format: Others
• Language: zh-TW
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/08011525486319809507

碩士 === 銘傳大學 === 會計學系碩士班 === 98 === This study examines the earnings management and market value. Literatures evidenced that earnings management affect the market value. We argue that the management determines earnings management based on the market value, and use simultaneous equations model to investigate the endogeneity between earnings management and market value. The empirical results show that earnings management has an impact on the market value. The market value will increase with net income by positive earnings management. In contrast, the market value will decrease by negative earnings management. In addition, the market value is positive effect of earnings management. The results show the market value is higher, the possible of positive earnings management is greater. On the other hand, the market value is lower, the possible of negative earnings management is greater.