After Freeman and Tse (1992), and Hayn (1995) indicated that positive-and negative-earning companies have different responses toward earning compositions based on the negative-earning companies¡¦ information content, Chamber (1996), Subramanyam and Wild (1996), Lipe, Bryant and Widner (1998) proposed the relationship between negative and future earning. In addition, Sloan (1996) suggested that accruals in the market have been over-valued. Xie (2001), however, pointed out that over-valued situation comes from manipulable earning compositions. Recently, Dopuch (2005), and Joos and Plesko (2002) reexamined the properties of negative-earning samples and found that investors¡¦ attitude on negative earnings will depend on predicted reversal possibility for valuation of a company. However, Taiwan has no studies on accrual evaluations after differentiating positive and negative earning for companies. This study adopts Mishkin (1983) evaluation model on abnormal accruals to analyze Taiwan 1391 listed company for the sample period from 1986 to 2005. The empirical results suggest that ERCs¡¦ of negative-earning companies are not significant; if the companies are differentiated by persist negative earning and transitory negative earning, investors tend to overprice transitory negative earning. In addition, investors tend to overprice the (discretionary) accruals positive-earning companies, but make accurate evaluation toward persistent earning companies with low reversal possibility. This study also found that persistency of positive-earning companies is longer than negative-earnings. Finally, by using logistic regression to differentiate the possibility of negative-earning accruals, there is no significant difference between the logistic regression model and cash flow classification from the empirical test. Based on the findings, how Taiwan security market response and evaluate discretionary accruals can be further understood.

The purpose of the study is to use the data of the companies that are listed (including OTC) in Taiwan Stock Exchange to examine whether companies engage in earnings management in the years convertible bonds are issued and de-listed. We also want to know if there is any difference of earnings management whether convertible bonds are issued domestically or abroad. Discretionary current accruals are adopted as proxies for earnings management and the regression models are used to control the related variables. The empirical results indicate that companies conduct earnings management in the years convertible bonds are issued and there is no significant difference of earnings management whether convertible bonds are issued in Taiwan or abroad. However, the data after 2001 indicate that companies that issued convertible bonds abroad have less earnings management than those that issued convertible bonds domestically. The results also show no significant difference in the years convertible bonds are de-listed. The reasons may be due to the relatively small sample size or companies may not use discretionary accruals to conduct earnings management.

Economic Value Added (EVA) is a residual income that corrects distortion of managerial incentives introduced by standard GAAP accounting. This study attempts to compare EVA with EPS and see which one is better. The difference between literature and this study is that we use not only cross-regression but also Granger causality test to make clear the relationship between stock return and performance measure and find out what is the value of EVA. Our main finding is as follows¡G 1.EVA significantly positively affects the contemporaneous stock return, but EPS is insignificant. This support the existence of EVA. 2.The components unique to EVA --- the cost of capital, significantly negatively affects the contemporaneous stock return, indicating that market does take into consideration the cost of capital when pricing the company. 3.As to Granger causality relationship, there is no lead-lag relationship between stock return and EVA or EPS. This means that performance measure cannot be a predictor of future stock return. In a word, EPS, ignoring equity capital and being distorted by GAAP accounting, neither explains the contemporaneous stock return, nor forecasts the future. However, EVA, considering equity capital and correcting distortion of GAAP accounting, can explain the contemporaneous stock return by representing the intrinsic value of the company. But, EVA, being still on the basis of history, cannot forecast the future. Anyway, EVA can replace EPS in reflecting the operating of the company, that is the contribution of EVA.

Abstract The study reported here was tring to examine the macroeconomic variables that determine the earnings multiple of the Taiwan stock market. For this study, monthly time-series data were used for each of the variables from 1991 through 2001. We used earnings to price ratio¡]E/P¡^as the dependent variable¡AM1B¡BGDP¡]lag¡^¡Bmarket return¡Bcapital increasing rate¡Blog of 5 years bond yield¡Binflation rate¡Blag of earning growth and market value to GNP ratio¡]MV/GNP¡^as the independent variables to construct a multiple-regression model. And we finded the maraket value to GNP ratio¡]MV/GNP¡^was the most powerful variable of the 5 significant variables. GDP¡]lag¡^was second, capaital incresing rate ranked third. Market return was fourth, and M1B was the fifth most explanatory variable. Both capaital increasing rate¡]supply side¡^and M1B¡]demand side¡^variables were signifinant¡Ameant the Law of Supply ¡® Demand remained unchanged in the Taiwan stock market.

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In the modern enterprises, the capital structures are made up by the specific or the non-specific populace sources. In the separation of management rights and ownership, their common interests may not be the same, so the agency problems are arising. In recent years, the public has serious doubts about unreasonable compensation of directors with higher ranks. The study samples are companies listed in Taiwan Stock Exchange from 2005 to 2007, but excluding banks and insurance companies. This study investigates the relationship between corporate governance and earnings management. The corporate governance variables include director stock ownership, the pledged share ratio of directors, chairman of the board as general manager, percent of independent directors on the board, the average compensation of directors, foreign investors¡¦ ownership, and institutional ownership in the firm. The empirical results show that chairman of the board as general manager who has significant influence on earnings management in the whole industry, electronic industry, and non-electronic industry; the average compensation of directors with higher ranks have significant influence on earnings management in the whole industry and non-electronic industry. In different industries, some empirical results support the hypotheses while other hypotheses do not hold. Thus, this research study has believed that the interconnection between the corporate governance variables and earning management will be affected by characteristics of certain industries. In addition, this research study has also found that there are no direct relationships between corporate governance and earnings management. Hence, the corporate governance in Taiwan is still considered not long enough and can not become an independent factor to affect earnings management inhibition of behavior. Therefore, certain parts of hypotheses will not establish.

<p>The United States of American has often been called “a nation of immigrants” due to its long immigration history. In fact, it absorbed large numbers of immigrants during the different epochs from all over the world. The economics issues of immigration are play a very important role which becoming increasingly considering. Therefore, the aim of this paper is analyze the trends of immigration to America and the determinants behind the migration decision in the United States. An analysis of the data shows that the migrants flow into America has increased substantially, and the trend of American immigration is upwards after the mid 1960s. From the literature review it appears that the impact of immigration on natives’ earnings and employment, is weak. However factors like wage differential between the origin and host countries, educational attainment and investment in human capital, language proficiency are important determinants of the extent of immigrants integration and assimilation in the new country.</p>

Thesis ( Ph.D. ) -- University of Texas at Arlington, 2008.

Using data from 1999 on immigrants in Sweden, we find that the gender earnings gap among immigrant is lower than natives’ gender earnings gap and negatively related to their source country gender earnings gap. We also show that immigrants’ earnings are lower and more concentrated than the natives’ ones which leads to a lower gender earnings gap for immigrants. Then, regarding the gender earnings gap along the earnings distribution and linking it with earnings distribution of immigrants and natives, we are able to conclude that immigrants are not strongly affected by the glass ceiling effect since they are not present in the upper tail of the distribution. We reach the conclusion that such gender earnings gap differences between natives and immigrants may be explained by selection in the labour force participation, occupational segregation of immigrants, source country culture and discrimination.

Initial public offerings (IPOs) are primarily valued using the comparable firms approach, whereby underwriters rely heavily on multiples based on the accounting information of peer firms. Effective use of the comparable firms approach depends significantly on the underwriter's ability to estimate the expected future growth and profitability of the IPO firm and its peers and make appropriate adjustments to the multiples to arrive at a final offer price for the IPO shares. I find evidence that, in general, IPO valuations are decreasing relative to peers in the similarity of the peer group to the IPO firm, but this effect is moderated by the peer group's accruals quality. These findings suggest that when peers are similar to the IPO firm, underwriters make less adjustments to the final offer price, however, higher peer accruals quality may ease the assessment of differences in growth and profitability, facilitating further adjustments.