| Summary: | 碩士 === 國立彰化師範大學 === 會計學系 === 106 === Using publicly-available data for public companies in Taiwan from 2014 to 2016.This research examines financial distress as the moderators to explore the moderating effect between directors’ and officers’ liability insurance (DOLI hereafter) and earning quality of financial statements. In the sample of financial distress companies, DOLI is positively associated with discretionary accruals positive manipulation.In normal companies, there is no significant relationship.In addition, we find that financial distress companies with higher abnormal DOLI coverage will further deteriorate earning quality of financial statements.These results imply that financial distress companies with DOLI as well as higher abnormal DOLI coverage may not conducive to earning quality of financial statements, due to increase the risk of moral hazard from directors’ and officers’.
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