| Summary: | 碩士 === 輔仁大學 === 會計學系碩士班 === 106 === This study analyzes the data from 1999 to 2016 of the listed companies with audit committee.
With linear regression analysis this study examines the impact on earnings management by setting up an audit committee. This study also looks into the difference between companies that set up their audit committees voluntarily and involuntarily. Moreover, this study examines the earnings management one to three years before and after the setup of audit committees.
The empirical results indicate that after the company set up the audit committee, there is less earnings management. Moreover, compared with companies that set up audit committee involuntarily, companies that voluntarily set up audit committee are better in restraining their earnings management.
It shows that companies setting up audit committee due to regulation requirements are probably doing it only for the legality and the effect is very limited. It will require some coaching process by the government to make these audit committees to have real effect so that the corporate governance system can be really implemented.
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