Earnings Management, Dividend Policy and Internationalization:Evidence from Thailand and Taiwan

• Main Authors: JIRASSAYA NORAKHUN, 諾吉雅
• Other Authors: CHIANG,YI-CHEN
• Format: Others
• Language: en_US
• Published: 2019
• Online Access: http://ndltd.ncl.edu.tw/handle/eu4x28

碩士 === 逢甲大學 === 國際經營與貿易學系 === 107 === This study aims to test the relationship of earnings management, dividend policy and internationalization in Thailand and Taiwan. In addition, this study examines whether a firm becomes international would affect earnings management, and also the effect to earnings management when a firm becomes international with paying dividend. The sample of this study are from Thai and Taiwanese firms. We obtained secondary data from Datastream and WorldScope and the period is from 2001 – 2017. We classify firm industry by SIC code excluding financial and insurance sector. We determine the earnings management, by Discretionary accruals, estimated from Jone model. As a result, we find that paying dividend firms can mitigate earnings management and when firms become international, it helps firms mitigate earnings management as well. Moreover, when MNC firms decide to pay dividend, it also can help them to mitigate earnings. However, degree of internationalization does not have effect on earnings management. Moreover when domestic firms decides to pay dividend, it can help to mitigate more earnings than MNC do. Furthermore, country with weak corporate governance such as Thailand may take a consideration to minimize earnings management by applying dividend payment and encouraging a firm to become MNC since the effect above in Thailand is more than in Taiwan.