| Summary: | 碩士 === 國立彰化師範大學 === 會計學系 === 99 === In recent years, private placements have become important channels adopted by companies for raising capital. However the private investors are limited to the specific investors and it makes the private placements an instrument for benefiting specific investors. In the meantime, the result of literature investigating the relationship between earnings management and the private placements is still inconsistent. This study examines the relationship between earnings management and private placements from the perspective of insider trading. The empirical result indicates that before private placements, as compared with those without private placements, the companies with private placements are more likely to manipulate earnings downward when insiders buying more stock. Additionally, one year after the lock-up period, as compared with the companies without private placement, the companies with private placements are more likely to manipulate earnings upward when insiders selling more stock.
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