| Summary: | 碩士 === 中國文化大學 === 會計學系 === 103 === Since the end of 2001 fraud have occurred in domestic and abroad, such as Enron, World Com and Rebar. These companies published untrue financial statements and manipulated their earnings. Moreover, the companies’ behavior in managing their earnings might cover their disadvantage operating condition. Consequently, the investors could make wrong decision on their investments and lead to their loss. Asian Corporate Governance Association and Credit Lyonnais Securities Asia co-published the Assessment Report of Asian Corporate Governance in September 2012. The rankings of Taiwan dropped two places from 4th to 6th since 2010. The Report indicated that the law enforcement is ineffective in Taiwan. In addition, Taiwan did not regulate the listed companies to fully establish the Audit Committee and Independent Directors and the progress of establishment is very slow. Therefore, this research explores the impact of Audit Committee and Supervisory System on Earnings Management.
The research samples are listed companies of Taiwan from 2009 to 2012. The data sources are from Taiwan Economic Journal (TEJ). The research method employs the SPSS to conduct empirical analysis on research models. The research results are the companies with establishment of Audit Committee to engage in Earnings Management with a lesser degree, but companies with Supervisory System has a higher degree of earnings management. Therefore, this research found that audit committee can effectively restrain earnings management, but the supervisors are more ineffective.
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