The Effect Of Firm Characteristics On The Trade-Off Between Real And Accrual-Based Earnings Management

• Main Authors: Chien, Linhui, 簡綾慧
• Other Authors: 薛敏正
• Format: Others
• Language: zh-TW
• Published: 2012
• Online Access: http://ndltd.ncl.edu.tw/handle/14745005420772105922

碩士 === 國立臺北大學 === 會計學系 === 100 === The purpose of this study is to examine the correlation between real and accrual-based earnings management under the effects of firm characteristics. This study use abnormal cash flow from operations, abnormal production costs, and abnormal discretionary expenses as a measure of real earnings management, and try to establish the regression model to analyze whether it has a complementary or substitution effect under the influence of the audit quality, firm litigation risk, the level of information transparency and accounting flexibility of the listed (and OTC) companies from 2005 to 2010. The empirical results show that there is no significant correlation between the choice of real and accrual-based earnings management under the effect of audit quality and the level of information transparency. However, the decision by firms to manage earnings by real manipulation versus accrual-based manipulation is significant complementary under different level of debt and litigation risk. Firms with lower accounting flexibility have greater incentive to substitute real manipulation for accrual-based earnings management.