| Summary: | 碩士 === 臺中技術學院 === 會計資訊系會計與財稅碩士班 === 99 === This study intends to investigate whether the quality of earning information is important to creditor, and whether the "earning quality" information hidden in the financial statements could be retrieved and interpreted by creditor, and whether creditor does take the information of earning quality into consideration of credit decision and interest rate. Besides, this study also discusses the effect of the corporate governance on earnings quality, and may affect cost of debt.
Earnings management behavior often carried out through accruals. To conduct the research, the annual discretionary accruals will be used as proxy of earning quality.
By examining the public companies in Taiwan Stock Market from 2001 to 2009, the empirical results show the earnings quality of financial reporting will be decreased, when companies adapting earnings management or having poor corporate governance, therefore creditors will raise interest rates on companies to protect their rights and reduce the risk of information, which will be effect to increase the cost of debt capital.
|
|---|
