The Association between Business Strategy and Earnings Management: the Effect of Voluntary Adoption of Compensation Clawback Provisions

  • 羅 雅莙

Student thesis: Doctoral Thesis

Abstract

This thesis aims to examine the relationship between business strategy and earnings management and further consider the impact of voluntary adoption of compensation clawback provisions on the relationship between the two Using a sample of Russell 3000 firms from 2014 to 2016 I have several empirical findings First this study finds that firms with greater prospector-like characteristics are less likely to engage in accruals manipulation but they are more likely to engage in real transactions manipulation In addition the increase in real transactions management dominates the reduction in accruals manipulation thereby leading to a marginal increase in the total amount of earnings management Secondly after taking compensation clawback provisions into consideration I also find that compensation clawback provisions have no suppression effect on the accruals management and real transactions management of firms with greater prospector-like characteristics This study provides results implying that the compensation clawback provisions can not control the behavior of management of firms with greater prospector-like
Date of Award2019
Original languageEnglish
SupervisorChaur-Shiuh Young (Supervisor)

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