| Summary: | 碩士 === 國立中興大學 === 會計學研究所 === 102 === The sample companies are obtained from 2000 to 2012. The purpose of this study is to examine the managers’ choice between classification shifting, accruals-based earnings management, and real earnings management. Additionally, We also shed light on the link between insider trading and the choice of earnings management. We create dummy variables (NITB and NITS) from the net insider trading ratio, and test the impacts of insider trading on the choice of earnings management.
The empirical results show that if the company has the motivation to manage its earnings, it will use multiple methods simultaneously. In addition, insider trading affects the company manager to make decisions. The company with insider trading will prefer to use various earnings management. When the choice of classification shifting is impeded, the results show that (1) accruals-based earnings management is affected by insiders'' net purchases and net sales, and that (2) real earnings management is affected by insiders'' net purchases and net sales. When the choice of accruals-based earnings management is restricted, real earnings management is affected by insiders'' net purchases and net sales
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