Quadrophobia: Strategic Rounding of EPS Data
| Autor: | Yu-chieh Hsu, 徐玉杰 |
|---|---|
| Rok vydání: | 2011 |
| Druh dokumentu: | 學位論文 ; thesis |
| Popis: | 99 Company management might undertake earnings management due to self interest, making EPS conform to analysts forecast, as well as maintaining gradual increase of earnings data, as if without the interference of human factors. If company management would like to increase EPS by 0.01, number four in the third post-decimal digit in EPS data is generally avoided; this behavior is termed as “Quadrophobia”. This paper focuses on the probability distribution of third post-decimal digit in EPS data to prove that EPS data had been rounded off. Empirical results show that the sample company does have the behavior of “Quadrophobia” with third post-decimal digit in EPS data, and this behavior is commonly and increasingly existed in listed companies in Taiwan. Management level would not use “Quadrophobia” to conform to or exceed analyst forecast on earnings. Furthermore, some company’s characteristic factor is the influencing factor of using “Quadrophobia”. After the amending the law of “Principles for Handling Establishment of Internal Control System in Listed Companies”, companies would reduce the behavior of “Quadrophobia”. |
| Databáze: | Networked Digital Library of Theses & Dissertations |
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