Does Corporate Governance Affect the Relationship Between Earnings Management and Firm Performance? An Endogenous Switching Regression Model
學年 103
學期 2
出版（發表）日期 2015-07-01
作品名稱 Does Corporate Governance Affect the Relationship Between 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
單位 淡江大學保險學系
出版者 New York: Springer New York LLC
著錄名稱、卷期、頁數 Review of Quantitative Finance and Accounting 45(1), p.33-58
摘要 This study investigates whether corporate governance affects the relationship between earnings management and firm performance by using Taiwanese data. We used an endogenous switching regression model to classify firms into strong and weak governance regimes based on an endogenously determined threshold. The results show that discretionary accruals (DAs) and discretionary current accruals (DCAs) have significantly negative effects on return on assets (ROA) and Tobin’s q for firms in a weak governance regime. This implies that managers in weakly governed firms are more likely to abuse accounting discretion than those in strongly governed firms, leading to decreased firm performance. Managers prefer using DCAs rather than DAs to window-dress financial earnings, but this causes a greater reversal of corporate value in the subsequent period. Conversely, DAs and DCAs are positively and significantly related to firm performance in a strong governance regime. This indicates that managers under strong governance typically exercise optimal accounting choices to respond to varied economic conditions, or to avoid costly debt-covenant violations, potentially enhancing firm value.
關鍵字 Corporate governance;Earnings management;Firm performance;Endogenous switching regression model;Discretionary current accruals
語言 en_US
ISSN 1573-7179; 0924-865X
期刊性質 國外
收錄於
產學合作
通訊作者 Tang, Hui-wen
審稿制度 是
國別 USA
公開徵稿
出版型式 ,電子版,紙本
相關連結

機構典藏連結 ( http://tkuir.lib.tku.edu.tw:8080/dspace/handle/987654321/93359 )

機構典藏連結