| Summary: | 碩士 === 國立中興大學 === 財務金融系所 === 99 === The information disclosed by enterprise ought to reflect the company’s value. Investors usually use earnings to determine company’s operating condition. Hence, company might reduce the level of information disclosure for easy to conduct earnings management.
To investigate the relationship between information disclosure quality and earnings management behaviors, this paper use the information disclosure and evaluation system to rate the degree of information disclosure. This study both evaluate accrual based earnings management and real earnings management. This paper investigates whether earnings management will affect by information disclosure quality. The sample include the public companies listed in Taiwan stock Exchange from 2000 to 2009, using Dechow et al. (1995) Modified Jones Model to measure discretionary accrual and Cohen et al. (2008) REM to measure real earnings management.
The empirical results reveal the following facts. With the information disclosure and evaluation system, companies will use more real earnings management but less discretionary accrual. It indicates that information disclosure quality will affect the use of this two earnings management. Besides, the movement of earnings will also affect discretionary accrual and real earnings management. Finally, the information disclosure quality will affect discretionary accrual in the subsequent sample, but it will not significantly affect real earnings management.
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