Corporate Governance, Earnings Management, and Firm Performance: An Endogenous Switching Regression Model
學年 100
學期 1
發表日期 2011-09-26
作品名稱 Corporate Governance, Earnings Management, and Firm Performance: An Endogenous Switching Regression Model
作品名稱（其他語言）
著者 Tang, Hui-wen; Chang, Chong-Chuo
作品所屬單位 淡江大學保險學系
出版者
會議名稱 World Business, Economics and Finance Conference
會議地點 Bangkok, Thailand
摘要 This paper employs an endogenous switching regression model (ESRM) to investigate the relation between earnings management and firm performance under different governance status. We find that both discretionary accruals (DA) and discretionary current accruals (DCA) have a significantly negative impact on ROA and Tobin’s Q for firms classified as into a weak governance regime. The results imply that these firms suffer severe agency problems and information asymmetry. Thus, corporate managers of the regime are likely to window dress earnings through accounting discretion, resulting in a reversal of operating performance and stock returns in subsequent periods. On the contrary, we find that DA and DCA are positive and significant associated with ROA and Tobin’s Q in the strong governance regime. These findings imply that the managers of a strong governance firm would select accounting policies that best reflect economic events, transactions and cash-flow. Therefore, the choice of accounting method under good corporate governance does not harm firm performance but increase firm value. It is also interesting to note that managers prefer to use DCA to window dress financial figures than DA, leading to a more serious reversal of firm value in the next period.
關鍵字
語言 en
收錄於
會議性質 國際
校內研討會地點
研討會時間 20110926~20110927
通訊作者 湯惠雯
國別 THA
公開徵稿 Y
出版型式 電子版
出處 World Business, Economics and Finance Conference
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