The Impacts of Financial Holding Company on Earning Management in the Pre- and Post- IFRS 17 Period

Abstract

In May 2017 IASB officially released the International Financial Reporting Standard No 17 "Insurance Contract" ( IFRS 17) The implementation of IFRS 17 has changed the way in which insurance premiums are recognized This will make companies more difficult to maintain stable earnings Therefore this article believes that the financial control industry will increase earnings management during this grace period so as to strengthen the confidence and makes the company's earnings meet the expectations of the stakeholders This study uses Taiwan's financial control industry as research sample and the period is from 2012 to 2019 (2017-2019 is the grace period) The empirical results find that the financial control industry with insurance subsidiaries has a higher degree of earnings management before and after the announcement of IFRS 17 and it is because the insurance business is a highly regulated business which needs to meet the regulations of the regulatory agency which needs more earnings management to maintain stable earnings The result of Hypothesis two shows that the main variable IFRS is significantly positively related to the degree of earnings management It refers that the financial holding companies will increase earnings management in order to allow stakeholders to maintain confidence in the companies after IFRS 17 is launched However the ownership of the insurance industry is not a factor that affects the degree of earnings management of the financial holding companies after the announcement of IFRS 17 and there may still other factors

Date of Award	2020
Original language	English
Supervisor	Tse-Shih Wang (Supervisor)