| Summary: | 碩士 === 中原大學 === 會計研究所 === 102 === Due to the debate that fat cat enterprise results from the particularity of directors’ and supervisors’ compensation, this study aims at discussing the association between fat cat enterprise and its accounting conservatism. Making use of total sample number of 6,360 observations taken from Taiwan listed companies during the period of 2008 to 2012, then we use Basu’s（1997）model as the medium of evaluating their conservatism and examine whether the earnings conservatism of fat cat enterprise is lower than others or not.
The empirical result indicates that when the company has been classified as fat cat enterprise, which means the directors and supervisors have received unusual remuneration obviously, it will make the directors and supervisors simply pay attention to the firm’s performance, therefore, lead to a lower degree of earnings conservatism.
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