The Impact of Earnings Management on Corporate Governance and Financing Decisions: The Moderating Effects of Capital Structure

• Main Authors: CHIEN, CHENG-YU, 簡正昱
• Other Authors: YU, HUI-FUN
• Format: Others
• Language: zh-TW
• Published: 2017
• Online Access: http://ndltd.ncl.edu.tw/handle/wu6cpq

碩士 === 中國文化大學 === 財務金融學系 === 105 === Based on the analysis of 28 financial ratios and 4 corporate governance variables, this paper explores the relationship between earnings management, corporate governance and financing decisions in highly leveraged traditional industry companies, and whether they can lift corporate performance. This empirical results show that when the debt ratio is more than 50%, the indicators affecting the performance of traditional industries are profitability, cash flow and corporate governance. The empirical results suggest that earnings management steps of high debt ratio of company: 1. Avoid the chairman of the board serving as general manager, separate management rights from ownership, looking for professional managers to do professional management. 2. Reduce the internal retention ratio, use surplus reserves to repay long and short-term borrowings (financing decisions), reduce borrowing dependency to enhance corporate governance, profitability and cash flow. Management meaning: the traditional industry companies attach importance to the views of outsiders’ accountants, avoiding the chairman of the board serving as general manager, can enhance corporate governance, reduce the risk of the company crisis.