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Financial Accounting Standard Committee modified the Statement of Financial Accounting Standards (SFAS) No.7 ¡§Consolidated Financial Statement¡¨ in 2004. The new standard was conducted in 2006. This study is to discuss the influence of the modified Standard on earnings management of Business Groups. The test samples include 178 companies, which belong to 69 business groups. The test window is from 2005 June to 2007 June. We, using Modified Jones Model, compared the discriminate accruals generated from both consolidated financial statements and financial statements of parent companies. The findings of this study are presented as follows: 1. The modification of SFAS No.7 conducted no influence on earnings management and related party transactions of business groups. 2. After modified SFAS No.7 was conducted, the discriminate accruals generated from consolidated financial statements differ from those of financial statements of parent companies. However, no such difference exists before SFAS No.7 was modified. The findings reveal that the modification of SFAS No.7 helps fully disclose the financial information of business groups. The stakeholders, therefore, should consider both consolidated financial information and financial statements of single parent companies.

This study examines the effects of research and development (R&D) reporting method and managerial knowledge of supervisor compensation on R&D project continuation decisions. The current study employs an experiment with a 2x3 between-participants design, manipulating both R&D reporting method (expense vs. capitalize) and knowledge of supervisor compensation (control group with no knowledge vs. knowledge of non-restricted stock compensation vs. knowledge of restricted stock compensation). Using salient short-term incentives to motivate real earnings management, this study demonstrates that capitalization may result in managers foregoing economically efficient R&D investment opportunities. The results indicate that managerial knowledge of supervisor compensation structure has little influence on managers’ R&D project continuation choices. However, when managers capitalizing R&D expenditures had knowledge that their supervisors received non-restricted (short-term) stock compensation their perceived personal responsibility for the decision significantly decreased. Participants who capitalized R&D expenditures and had knowledge that their supervisor received restricted (long-term) stock compensation rated the importance of making a decision to please their supervisor significantly higher than all other participants. Additionally, participants with knowledge that their supervisors restricted stock compensation were significantly more concerned about the likelihood of negative personal repercussions regardless of R&D reporting method. These findings contribute to the management accounting literature by providing new insights on the influence of knowledge of supervisor compensation on managerial decision making as well as additional insights into the factors that contribute to and limit real earnings management. This study also extends the literature on R&D by providing evidence of the potential for real earnings management when R&D expenditures are capitalized in the absence of personal responsibility.

According to the existing literatures, there are few directly discussions about the relations of cash flow volatility on firm value and the issues of cash flow volatility are relatively disadvantage to those of earning volatility, arousing the interest of this study.Therefore, this study verifies the effect of cash flow volatility on firm value by using data of listed companies in Taiwan and the method of Pooled Regression. Also, the number of companies are divided up based on the median of cash flow¡Bdebt ratio and total asset, and examine which circumstances are more significant statistically. Finally, this study verifies the effect of earning volatility and earning management on firm value to explain that cash flow volatility is more effective on firm value. The empirical results show that cash flow volatility is negatively on firm value, and the effects are more significant statistically in small asset firms¡Blow debt ratio firms and high cash flow firms. But earning volatility is not significant statistically on firm value, and earning management is ineffective on firm value. The results indirectly explain that cash flow volatility is a more effective indicator on firm value and explain that managers managing earning to increase firm value are useless. According to the empirical results, there is no benefit when managers continue stabilizing earnings based on earning management. If investors continue selecting companies to invest based on earning volatility, the effects could be less than the ones of cash flow volatility. Therefore, the empirical results provide one indicator of the evaluations of firm value with managers and investors.

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There are more and more enterprises using private placement after private placement is permitted in Taiwan in 2002. It shows that private placement is becoming one choice for public companies to raise capital. The study examines the announce effect of private placement, the one year stock price performance after private placement, variables related to stock price performance after private placement, and earning management in private placement. The results of the study as follows¡G 1.Public enterprises¡¦ private placement did not have a significant announcement effect; it maybe because that most public enterprises with private placement were small enterprises, when they announced private placement did not catch investors attentions. 2.Insiders know more information than general investors, and most private placement rose from insiders. It maybe shows that insiders think enterprises would get better after private placement. So insiders got major portion of private placement maybe the reason of the significant positive of one year stock price performance after private placement. 3.In regression analysis, firm size and stock price performance present significant negative relationship, the ratio of insiders and institutions has significant positive relationship with stock price performance. 4.The study did not find enterprises through earning management lure investors to attend private placement.

Submitted by Jose Antonio Tejeda Almonte (jtejedaalmonte@gmail.com) on 2016-04-08T15:06:32Z No. of bitstreams: 2 ANÁLISE EMPÍRICA DOS MODELOS OPERACIONAIS PARA A DETECÇÃO DO GERENCIAMENTO DE RESULTADO NAS EMPRESAS DE CAPITAL ABERTO DO BRASIL APÓS A CONVERGÊNCIA DAS NORMAS IFRS.pdf: 1138531 bytes, checksum: 1acbca935647b22b8876498b944c8ae5 (MD5) Ata da Defesa.pdf: 594637 bytes, checksum: 2a0c0561541d8a56464267f5e334a4aa (MD5) / Approved for entry into archive by Marivalda Araujo (masilva@ufba.br) on 2016-04-11T16:59:10Z (GMT) No. of bitstreams: 2 ANÁLISE EMPÍRICA DOS MODELOS OPERACIONAIS PARA A DETECÇÃO DO GERENCIAMENTO DE RESULTADO NAS EMPRESAS DE CAPITAL ABERTO DO BRASIL APÓS A CONVERGÊNCIA DAS NORMAS IFRS.pdf: 1138531 bytes, checksum: 1acbca935647b22b8876498b944c8ae5 (MD5) Ata da Defesa.pdf: 594637 bytes, checksum: 2a0c0561541d8a56464267f5e334a4aa (MD5) / Made available in DSpace on 2016-04-11T16:59:10Z (GMT). No. of bitstreams: 2 ANÁLISE EMPÍRICA DOS MODELOS OPERACIONAIS PARA A DETECÇÃO DO GERENCIAMENTO DE RESULTADO NAS EMPRESAS DE CAPITAL ABERTO DO BRASIL APÓS A CONVERGÊNCIA DAS NORMAS IFRS.pdf: 1138531 bytes, checksum: 1acbca935647b22b8876498b944c8ae5 (MD5) Ata da Defesa.pdf: 594637 bytes, checksum: 2a0c0561541d8a56464267f5e334a4aa (MD5) / CAPES / Esta pesquisa investigou se os estimadores dos modelos propostos para detecção os accruals discricionários utilizados na detecção do gerenciamento de resultados são consistentes para avaliar a discricionariedade dos gestores no Brasil após a convergência das normas internacionais do International Accounting Standards Board (IASB). A amostra neste estudo esta composta pelo conjunto de companhias abertas do mercado de capitais brasileiro, compreendendo o período 2004-2011. Inicialmente, avaliou-se o impacto da convergência das IFRS, este foi conjuntamente estimado mediante o método Propensity Score matching e o método de diferenças em diferenças. O estimador de diferença em diferença é oriundo da diferença entre o padrão de apresentação das IFRS e o BR-GAAPS e das diferenças entre empresas com níveis diferenciados de governança corporativa e mercado tradicional. Para avaliar analise de especificação e o poder preditivo dos modelos utilizaram-se diversos procedimentos estatísticos. Todos os modelos do trabalho para mensurar os accruals discricionários são estimados mediante o pooling of independent cross-sections mediante os métodos de regressão robusta: erro-padrao robusto, mínimo quadrado ponderado e regressão quantilica. Os resultados confirmam a hipótese H1, a adoção do IFRS pelas companhias abertas brasileiras afetou significativamente o nível de accruals totais e o efeito da convergência foi diferenciado para cada um dos quantis. Para as empresas com níveis altos de accruals totais negativos, a convergência das IFRS e pertencer a níveis de governança corporativa são um fator negativo e diferenciado ás empresas do mercado tradicional. Já para níveis altos de accruals totais positivos a relação é positiva. Além de alguns modelos ter especificação fraca, baixo poder preditivo e ser afetados significativamente quando estimados mediante métodos de estimações robustos, os resultados comprovam que o impacto teve resultados semelhantes quando aplicados a diferentes modelos de estimação de accruals e mostram que conforme fora aumentando os percentis da distribuição dos accruals totais, as variáveis explicativas comportam-se de forma diferenciada Independiente dos modelos de estimação. / This research investigated whether the estimators of the proposed models to detect discretionary accruals used in earnings management detection are consistent to assess the discretion of managers in Brazil after the convergence of international standards of the International Accounting Standards Board (IASB). The sample in this study is composed by all public companies in the Brazilian capital market, covering the period 2004-2011. Initially, we evaluated the impact of the IFRS convergence, this has been jointly estimated by the propensity score matching method and the method of difference in differences. The difference estimator in difference arises from the difference between the standard of presentation of IFRS and BR-GAAPS and differences between companies with different levels of corporate governance and traditional market. To assess specification and analyze the predictive power of the models we used various statistical procedures. All work models to measure discretionary accruals are estimated by the pooling of independent cross-sections by the methods of robust regression: Robust error-standard, square minimum weighted and quantile regression. The results confirm the hypothesis H1, the adoption of IFRS by Brazilian companies significantly affected the level of total accruals and the effect of convergence was different for each quantile. For businesses with high levels of negative total accruals, convergence of IFRS and belong to corporate governance levels are a negative and differential factor to companies in the traditional market. For high levels of positive total accruals the relationship is positive. Besides some models have low specification, low predictive power and be significantly affected when estimated by robust estimation methods, the results show that the impact had similar results when applied to different estimation models of accruals and show that as had been increasing percentiles distribution of total accruals, the explanatory variables behave differently Independient of estimation models.

Income decreasing strategies conducted by management could be harmful for various stakeholders. One example is big bath accounting, which could be accomplished in numer- ous ways. This study focus on big baths achieved by recognising impairments of goodwill. Purpose - The purpose of this study is to examine patterns of association between big bath accounting and impairment of goodwill within the telecommunication service industry in Europe. Further, this study aim at contributing to the discussion regarding utilisation of big baths through impairments of goodwill, and takes the perspective of an external stakehold- er. Delimitations - The study is restricted to European telecommunication entities comprised in STOXX Europe 600 Index. Method - This study was conducted using a hybrid of qualitative and quantitative research strategy with a deductive approach. The five indicators used to identify various big bath behaviours were inspired and derived from theory and previous research. Data from 2009 to 2015 was collected from the companies’ annual reports and websites, and analysed by the help of codification of each fulfilled indicator where 2009 merely served as a compara- tive year for 2010. By the use of a scoreboard the collected data was summarised on an ag- gregated yearly basis as the industry, not the specific companies, were analysed. Empirical findings - The results of this study suggests that big baths are executed among tele- communication companies within Europe. These are conducted simultaneously as impair- ments of goodwill are present, facilitated by earning management. A possible explanation is considered to be the room for interpretation inherent in IAS 36, enabling goodwill impair- ments to be recognised on managers’ command. Thereby an impairment could be “saved” for better or worse circumstances, or recognised when there exist an opportunity to max- imise (the manager's) wealth in the future. This study reveal the co-occurrence of goodwill impairments and big bath-indications, however a review of causal relationships are not en- abled by the limitations of the chosen method.