This paper aimed to investigate the relationship between inside ownership of business group and affiliated firm earnings management and further to examined the moderating effects of firm international diversification and family tie. Discretionary accruals were used to measure the degree of manipulated earnings and the sample was selected ranging from 2001 to 2005. We use regression models to test the hypotheses. The empirical findings suggested that lower inside ownership resulted in higher degree of earnings management and the degree of affiliated firm international diversification positively moderated this relationship. Moreover, the findings also suggested that, as the degree of family tie escalated, internal governance mechanism weakened, which strengthened the degree of earnings management with lower group inside ownership.
英文關鍵字
Business Group, Corporate Governance, Inside Ownership, International Diversification, Earnings Management.
