A Detection for Earnings Management Using DuPont Analysis: Evidence from Taiwan
碩士 === 國立臺灣大學 === 會計學研究所 === 101 === This study propose a diagnostic for earnings management based on directional changes in firms’ profit margin （PM）and asset turnover ratios（ATO）. Consistent with expectations, we find that contemporaneous increases in profit margin and decreases in asset turn over...
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| Format: | Others |
| Language: | zh-TW |
| Published: |
2013
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| Online Access: | http://ndltd.ncl.edu.tw/handle/79781254068922194475 |
| Summary: | 碩士 === 國立臺灣大學 === 會計學研究所 === 101 === This study propose a diagnostic for earnings management based on directional changes in firms’ profit margin （PM）and asset turnover ratios（ATO）. Consistent with expectations, we find that contemporaneous increases in profit margin and decreases in asset turn over signal upward earnings management. In comparison with Accrual model, our results suggest that the DuPont Analysis is more likely than that of Accrual model to meet or just beat analyst forecasts; the DuPont Analysis is less likely than that of Accrual model to have extreme earnings surprises.
The ATO⁄PM diagnostic provides incremental information over performance-adjusted abnormal accruals. Relying on popular accounting ratios is easy to compute with fewer data requirements.
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