The Impact of Earnings Management and Derivatives on the Exchange Risk Exposure

• Main Authors: Yu Hui Lin, 林玉惠
• Other Authors: 林鳳儀
• Format: Others
• Online Access: http://ndltd.ncl.edu.tw/handle/vab964

碩士 === 國立臺北科技大學 === 經營管理系碩士班 === 103 === With the rise of international trade every year, exchange rate fluctuations affect revenues; firms will adopt earnings management and derivatives to reduce exchange rate volatility. The previous research used accruals earnings management and derivative to measure exchange risk exposures. This study used accruals earnings management and added real earnings management. Earnings management motive will be divided into income-smoothing earnings management and small loss aversion earnings management. This research wants to study the accruals earnings management, real earnings management and derivative for the exchange risk exposure. Afterwards, the added export value for conditioning effect, wants to explore whether the export value will affect earnings management and derivatives for the exchange risk exposure. The results show that earnings management abnormal gains on disposal of assets and derivatives income-smoothing earnings management, small loss aversion earnings management, there will be a negative relationship between exchange risk exposures. Income- smoothing earnings management and derivatives will be affected by the export of foreign currency exposure so that the degree of risk will be negative relationship reduce.