The Relation between Investor Sentiment and Earnings Management

• Main Authors: Tsai, Ya-Huang, 蔡雅凰
• Other Authors: Lin, Y.C. George
• Format: Others
• Language: zh-TW
• Published: 2011
• Online Access: http://ndltd.ncl.edu.tw/handle/48252311659845424765

碩士 === 國立中正大學 === 會計與資訊科技研究所 === 99 === The aim of this paper is discussing whether accruals items (discretionary accruals items) will affected by investor sentiment, and further discussing whether managements will use sentiment as a manage tool to do earning management by accruals items or discretionary accruals items, and corporate with well corporate governance will reduce this situation. Followings are results: 1.As a whole, when sentiment is high, it will decrease bad firms to do earnings downward, and it will ease the mispricing of accruals items. But there were still no evidence to show that why bad firms doing so. But when sentiment is high, it will increase accrual mispricing of firms with good performance. And only small companies ( based on total assets) will more easily affected by investor sentiment. 2.Accruals will be more easily mispricing when sentiment is high compared with low sentiment; managements will do accruals management. 3.When sentiment is high, firms with well corporate governance will reduce managements doing accruals management.