school

UM E-Theses Collection (澳門大學電子學位論文庫)

check Full Text
Title

type of earnings management and the effect of the new accounting standards for business enterprises in China

English Abstract

In this study, I intend to investigate the effect of new accounting standards for business enterprises (ASBEs) on earnings management in Chinese listed firms. Using multiple regressions, this study yields four major findings. Firstly, I find that the magnitude of earnings management increases after the enforcement of new ASBEs because new standards create new methods for managers to manipulate reported earnings. Secondly, I find that discretionary accruals are positively related to firm’s future profitability, which indicates that Chinese listed companies tend to engage in signaling earnings management. Thirdly, I find that the new ASBEs enhance the association between discretionary accruals and future profitability. Finally, I find that stock market attaches value to the information component of discretionary accruals and can response positively to the effect of new ASBEs on the informativeness of discretionary accruals.

Issue date

2011

Author

Chen, Can

Faculty

Faculty of Business Administration

Degree

M.B.A.

Subject

Accounting -- Department of Accounting and Information Management

Accounting -- Standards -- China

Earnings management -- China

Corporations -- China -- Accounting

Supervisor

Liu, Ming

Files In This Item

Full-text (Intranet)

Full-text (Intranet)

Location
1/F Zone C
Library URL
991001805599706306