Earning Management of Financial Holding Company- Detect by Realized Gain or Loss from Financial Merchandise

• Main Authors: Chi-Chuan Liang, 梁期全
• Other Authors: Shu-Hsing Li
• Format: Others
• Language: zh-TW
• Published: 2011
• Online Access: http://ndltd.ncl.edu.tw/handle/15399489990873010553

碩士 === 國立臺灣大學 === 會計學研究所 === 99 === In the past decade, financial holding companies in Taiwan have confronted with varied worldwide catastrophes, including the subprime crisis and financial tsunami, which culminated in the collapses of several financial giants in the U.S. However, to compare with the U.S. financial companies, all the local Taiwanese financial companies have managed to stand still. Inspired by this fact, this thesis proposes that, to survive from the plights, all these companies might have practiced earning managements under the auspice of the conglomerates. This thesis aims to find the earning management behaviors by analyzing realized gain or loss from financial merchandises since the inappropriate valuations are deemed to have caused the financial crises above. The result shows that the variances of realized gain or loss in parent companies are less than that of subsidiary companies, indirectly supporting the hypothesis of earnings managements by the subsidiaries. In conclusion, based on the findings above, this thesis sheds light on the potential deficiencies in the current financial regulation system, and thus contributes alternative direction to relevant law-making and revision of governmental restrictions.