Under earnings pressures, the impact of financial expertise and earnings management: accrual earnings management and real earnings management

• Main Authors: Chia-hsi Hung, 洪嘉禧
• Other Authors: Chia-chi Lu
• Format: Others
• Language: zh-TW
• Published: 2012
• Online Access: http://ndltd.ncl.edu.tw/handle/86340025051149176057

碩士 === 國立中央大學 === 會計學研究所 === 100 === In 2002, the SEC issued its proposal on 407, including a tentative and restricted definition of a financial expert, which raised lots of concerns. To accommodate these concerns, the SEC expanded the definition of a financial expertise in 2003. Under this situation, does financial expertise improve a firm’s corporate governance environment? In this paper we use 1357 suspect firms from 2004 to 2007, which face earnings pressures, to examine the impact of whether audit committee with financial expertise, audit committee with more than one financial expertise and financial expertise(s) is(are) both in audit committee and compensation committee on discretionary earnings management and real earnings management. We find that audit committee with financial expertise and audit committee with more than one financial expertise reduce discretionary earnings management, and financial expertise(s) is(are) both in audit and compensation committee induce discretionary earnings management. Audit committee with financial expertise, audit committee with more than one financial expertise and financial expertise(s) is(are) both in audit and compensation committee have no association between real earnings management-stock repurchase.