| Summary: | 碩士 === 淡江大學 === 會計學系碩士班 === 106 === After the adoption of IFRS in Taiwan, companies used consolidated statements to replace individual statements as the main financial statement. This study explores whether the industrial diversity of group affiliated companies affect the earnings management decisions when consolidated statements are prepared. The empirical results show that group companies with industrial diversity have greater earnings flexibility, whether it is accrual-based earnings management or real earnings management. In addition, if industrial diversity is divided into relevant and non-relevant diversity, the relevant diversity enables the group companies to adjust its earnings upwards through accrual-based earnings management. Non-relevant diversity allows the group to adjust its earnings through real earnings management. This study also found that if the group companies current year’s financial statements are checked by an expert auditor, the industry expert constrains the use of accrual-based earnings management which cause companies to switch to real earnings management.
|
|---|
