| Summary: | 碩士 === 國立中正大學 === 會計與資訊科技研究所 === 104 === This paper is intended to investigate whether the relative association between the earnings management strategies and firm value differs between the family and non-family firms using a sample of U.S. listed firms. The emipical results indicate that accrual-based earnings management and real activities manipulation are endogenous and are partial substitutes for reaching the earnings targets, and that their magnitudes are determined simultaenously. Specifically, I find that managers tend to use the aforementioned earnings management tools to take a “big bath” and smoothing earnings. Moreover, this paper documents that discretionary accrulals (real activities manipulation) are positively (negatively) associated with firm value for both the family and non-family firms. The positive association betweeh accruals-based earnings management and firm value is more pronounced for the non-family firms relative to the family firms. On the other hand, the negative association between real activies manipulation and firm value is more severe for the non-family firms relative to their counterpart. These infereces are robust to alternative variable definitions and firm-year specifications.
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