Book-Tax Conforming or Nonconforming Earnings Management Strategies:Empirical Evidence on Taiwan Restatement Firms
2010
Hochschulschrift
Zugriff:
98
The main purpose of this study is to examine the option of firms’ earnings management strategy rely more on book-tax conforming or nonconforming in several situation. This study uses restated firms as samples.Using the difference between the originally reported and restated change in before tax net income and current tax expenses as a proxy for book-tax conforming and nonconforming earnings management strategy. Samples are divided into upward earnings management and downward earnings management. We find that nonconforming earnings management is more prevalent. The research result shows that upward earnings management firms that having NOL,higher freecash flow rely less on nonconforming earnings management strategies. But in downward earnings management firms, having NOL rely more on nonconforming earnings management strategies. Otherwise we find the firm using a high-quality auditor does not significantly affect the choice of the earnings management strategies, and can not detect the firms earnings management.Also find that even in the same situation, earnings management upward and downward firms strategic choices are not the same. Further examine that firms having deferred tax expense, using a big 5 auditor, CPA’s opinion, the board size are useful in predicting restatements. This results are same as prior research.
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Book-Tax Conforming or Nonconforming Earnings Management Strategies:Empirical Evidence on Taiwan Restatement Firms
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Autor/in / Beteiligte Person: | Chen, Yi-Meng ; 陳奕孟 |
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Veröffentlichung: | 2010 |
Medientyp: | Hochschulschrift |
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