英文摘要 |
This study investigates the impact of increased reporting frequency on earnings management and the choices between accrual-based earnings management (AM) and real earnings management (RM). We focus on the change in the financial reporting frequency of Taiwanese firms from 1983 to 1992 and categorize the sample period into three reporting regimes: semi-annual, quarterly, and monthly. We find a positive relationship between reporting frequency and earnings management. We further find that frequency-induced earnings management tends to favor RM over AM. In addition, we provide evidence that firms experiencing higher capital market pressure, relying more on implicit claims with stakeholders, and operating within less robust information environments are more inclined to frequency-induced RM. Furthermore, we observe that reporting frequency-induced RM leads to a decline in subsequent profitability for firms facing higher capital market pressure, whereas it contributes to an improvement in subsequent profitability for firms with a greater reliance on implicit claims with stakeholders and those operating within less robust information environments. |