Earnings Management Surrounding CEO changes
Date Issued
2005
Date
2005
Author(s)
Chen, Yi-Ju
DOI
zh-TW
Abstract
When CEO change incident occurs in enterprises, the new CEO will usually have more extensive decision change, including the management policy, and accounting policy. It is interesting to investigate whether these changes will involve one's own interests. This thesis examines company which happened CEO change and whether the incident will follow earnings management. The measurement adopted is to utilize Modified Jones Model to weigh the discretionary accruals, and has calculated the adjusted discretionary accruals which adjusted the proportion of change in account receivables, and observe the non-operation items.
The source of the data is to search from 1998 to 2003, listed company in Taiwan that with CEO change incident as the sample, and then collect the financial data for three years from last year to next year surrounding CEO change incident of every company. Except that discuss the degree and purpose of management of the whole earnings management, it probes into whether the earnings management in electrons industry will different from the non-electron industry, how about financial industry with non-financial industry? Then whether conglomerate or not and duality will influence the degree of earnings management.
The result studied shows surrounding CEO change incident, it really followed the earnings management, especially in the year after CEO change. While utilizing the non-operation items to detect earnings management, the result is not very obvious. When divided sample into two groups according to the factors of industry: one is electron vs. non-electron; the other is financial vs. non-financial, and conglomerate or not, and the duality of chairman of the board of directors and CEO or not. The results show that the electron industry and conglomerate company have more earnings management than the other group. The results of financial industry issue and duality issue were not as expected.
The source of the data is to search from 1998 to 2003, listed company in Taiwan that with CEO change incident as the sample, and then collect the financial data for three years from last year to next year surrounding CEO change incident of every company. Except that discuss the degree and purpose of management of the whole earnings management, it probes into whether the earnings management in electrons industry will different from the non-electron industry, how about financial industry with non-financial industry? Then whether conglomerate or not and duality will influence the degree of earnings management.
The result studied shows surrounding CEO change incident, it really followed the earnings management, especially in the year after CEO change. While utilizing the non-operation items to detect earnings management, the result is not very obvious. When divided sample into two groups according to the factors of industry: one is electron vs. non-electron; the other is financial vs. non-financial, and conglomerate or not, and the duality of chairman of the board of directors and CEO or not. The results show that the electron industry and conglomerate company have more earnings management than the other group. The results of financial industry issue and duality issue were not as expected.
Subjects
總經理變動
盈餘管理
裁決性應計項
CEOchange
Earnings management
Discretionary accruals
Type
other
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