Purpose – In recent years, China has been making progress in internationalizing its financial reporting system. However, it is believed that earnings management from legitimate accounting choices to fraud that violates generally accepted accounting principles, is common in the mainland. The...

Purpose – To examine whether the provisions of SFAS No. 142 allow for the earnings management technique termed “big bath” and whether firm size plays a role in earnings management. Design/methodology/approach – A random selection of companies with December 31, 2002 fiscal year‐ends...

Purpose – This paper investigates the relationship between audit quality (as measured by auditor size and industry specialization) and earnings management (as measured by unexpected accruals) for Taiwan IPO firms. Design/methodology/approach – First uses unexpected accruals in the modified...

Purpose – In recent years, China has been making progress in internationalizing its financial reporting system. However, it is believed that earnings management from legitimate accounting choices to fraud that violates generally accepted accounting principles, is common in the mainland. The...