Do firm’s corporate performance and corporate governance affect the level of earnings management in Taiwan IC design industry?

Considering the growth potential and profitability of IC design companies in Taiwan, investors have become more interested in this industry. Consequently, the managers of these companies are more concerned about earnings and utilise accounting accruals to manage their earnings. This project uses a m...

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Main Author: Ma, Chih-Ting
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2010
Online Access:https://eprints.nottingham.ac.uk/23694/
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author Ma, Chih-Ting
author_facet Ma, Chih-Ting
author_sort Ma, Chih-Ting
building Nottingham Research Data Repository
collection Online Access
description Considering the growth potential and profitability of IC design companies in Taiwan, investors have become more interested in this industry. Consequently, the managers of these companies are more concerned about earnings and utilise accounting accruals to manage their earnings. This project uses a modified Jones model to detect earnings management and regression analysis to examine the relationships among earnings management and performance, governance, IPOs, and audit quality in the Taiwanese IC design industry. The results show that earnings management exists in Taiwanese IC design companies. In addition, the level of earnings management is influenced by each firm’s performance, governance, and audit quality. Based on these results, investors should carefully read the financial reports of Taiwanese IC design companies; also, auditors should pay more in-depth attention when auditing these companies. Finally, internal controls should be more effective and capable of preventing earnings management.
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spelling nottingham-236942018-02-15T16:48:18Z https://eprints.nottingham.ac.uk/23694/ Do firm’s corporate performance and corporate governance affect the level of earnings management in Taiwan IC design industry? Ma, Chih-Ting Considering the growth potential and profitability of IC design companies in Taiwan, investors have become more interested in this industry. Consequently, the managers of these companies are more concerned about earnings and utilise accounting accruals to manage their earnings. This project uses a modified Jones model to detect earnings management and regression analysis to examine the relationships among earnings management and performance, governance, IPOs, and audit quality in the Taiwanese IC design industry. The results show that earnings management exists in Taiwanese IC design companies. In addition, the level of earnings management is influenced by each firm’s performance, governance, and audit quality. Based on these results, investors should carefully read the financial reports of Taiwanese IC design companies; also, auditors should pay more in-depth attention when auditing these companies. Finally, internal controls should be more effective and capable of preventing earnings management. 2010 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/23694/1/Management_Project_%28Earnings_Management%29.pdf Ma, Chih-Ting (2010) Do firm’s corporate performance and corporate governance affect the level of earnings management in Taiwan IC design industry? [Dissertation (University of Nottingham only)] (Unpublished)
spellingShingle Ma, Chih-Ting
Do firm’s corporate performance and corporate governance affect the level of earnings management in Taiwan IC design industry?
title Do firm’s corporate performance and corporate governance affect the level of earnings management in Taiwan IC design industry?
title_full Do firm’s corporate performance and corporate governance affect the level of earnings management in Taiwan IC design industry?
title_fullStr Do firm’s corporate performance and corporate governance affect the level of earnings management in Taiwan IC design industry?
title_full_unstemmed Do firm’s corporate performance and corporate governance affect the level of earnings management in Taiwan IC design industry?
title_short Do firm’s corporate performance and corporate governance affect the level of earnings management in Taiwan IC design industry?
title_sort do firm’s corporate performance and corporate governance affect the level of earnings management in taiwan ic design industry?
url https://eprints.nottingham.ac.uk/23694/