Financial statement quality can directly affect investor confidence. Financial fraud is most through misstated financial reports, and even fraudulent misstatement may result from financial restatement. Well-functioning mechanisms can improve financial statement quality. In this study, the financial restatements from 2002 to 2008 were investigated to discuss the influences of operating performance, degree of earnings management and corporate governance mechanisms.
The results reveal that the worse the operating performance, the more probability the financial restatements. It indicates that increasing earnings can cover up bad operation. It is further found that the financial restatements with worse operating performance will probably increase their restatement amounts. In the aspect of earnings management, the results show that the higher the degree of earnings management by discretionary accruals, the more probability the financial restatements. It is indicative of the manager use discretionary accruals to operate the earnings management in order to cover up their worse financial performance. But the verified result is not outstanding. It is also found that the financial restatements with higher degree of earnings management by discretionary accruals will probably increase their restatement amounts. Finally, the results can not prove whether the corporate governance mechanisms show that the financial restatements probably occur in the companies with CEO duality. Moreover, the results also can not prove whether the larger the board of directors, the higher their restatement amounts.
| Identifer | oai:union.ndltd.org:NSYSU/oai:NSYSU:etd-0108110-154847 |
| Date | 08 January 2010 |
| Creators | Yang, Yung-hung |
| Contributors | Wu Chi Chenh, Pei-how Huang, Wen-Hua Shen, Ruey-Dang Chang |
| Publisher | NSYSU |
| Source Sets | NSYSU Electronic Thesis and Dissertation Archive |
| Language | Cholon |
| Detected Language | English |
| Type | text |
| Format | application/pdf |
| Source | http://etd.lib.nsysu.edu.tw/ETD-db/ETD-search/view_etd?URN=etd-0108110-154847 |
| Rights | not_available, Copyright information available at source archive |
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