会计师事务所任期与盈馀管理之关联性—自我选择模型之运用.pdfVIP

理聯 The Association between Audit Firm Tenure and Earnings Management: Evidence from the Self-Selection Model 理聯— The Association between Audit Firm Tenure and Earnings Management: Evidence from the Self-Selection Model 隆 了 輪度來利 2000 年2003 年兩 料 異數理度理數 兩 理度 理度 理 度 不 不 理 Abstract: Following many events on accounting scandals such as Enron case in USA and Procomp Informatics case in Taiwan, the capital market has suffered a major impact. To better upkeep the market and to safeguard the interest of public investors, many government regulators are hoping to improve the audit quality by the mechanism of mandatory auditor rotation. Based on the financial data from year 2000 to 2003 of the listed companies in Taiwan, this study uses over 2,000 firm/year observations to examine two issues: (1) if the audit firm tenure relates to the level of earnings management, proxied by the absolute value of abnormal accruals; (2) if the association between the audit firm tenure and earnings management remains unchanged with the use of “Self-selection” model instead of traditional OLS regression model. Our empirical result shows that the audit firm tenure is significantly negatively related to the level of earnings management from traditional OLS regression, however