英文摘要 |
The main purpose of this research is to evaluate the earnings management detecting ability of five commonly used accruals models: the DeAngelo Model, the Healy Model, the Industry Model, the Cross-sectional Jones Model and the Cross-sectional Modified Jones Model, for examining the association between discretionary accruals and financial distress. Research sample in this study is composed of two groups: distressed companies and non-distressed companies. The former group contains full-delivery stocks listed in Taiwan Stock Exchange between 1993 and 2001; the latter group consists of matched listed firms by industry and firm size. Both univariate tests and multiple OLS regression analyses are used to examine the relationship between earnings management and financial distress. Regression analyses indicate that the DeAngelo Model and Healy Model can better detect earnings management behavior by distressed firms than the other three models in the between-group tests. Findings from additional tests show that the Cross-sectional Jones Model and the Cross-sectional Modified Jones Models are not sensitive to the firm's performance. |