Earnings management in Japan.

We investigate how the companies under keiretsu manage their earnings compared to the non-keiretsu in the Japanese market during two periods, namely 1988-1997 and 1998-2007. Using the modified Jones model, which measures the management of reported earnings through discretionary accruals, this paper...

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Main Authors: Seah, Wan Lin., Yap, Jasmine Aik Ha., Sim, Shi Lin.
Other Authors: Low Buen Sin
Format: Final Year Project
Language:English
Published: 2009
Subjects:
Online Access:http://hdl.handle.net/10356/15133
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Institution: Nanyang Technological University
Language: English
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spelling sg-ntu-dr.10356-151332023-05-19T06:24:08Z Earnings management in Japan. Seah, Wan Lin. Yap, Jasmine Aik Ha. Sim, Shi Lin. Low Buen Sin Nanyang Business School DRNTU::Business::Accounting::Reporting We investigate how the companies under keiretsu manage their earnings compared to the non-keiretsu in the Japanese market during two periods, namely 1988-1997 and 1998-2007. Using the modified Jones model, which measures the management of reported earnings through discretionary accruals, this paper finds that the progression in time has continued to reveal significantly greater earnings management among non-keiretsu than keiretsu firms. This can be attributed to greater monitoring ability among the keiretsu firms. Interestingly, we find that the magnitude of difference in discretionary accruals between keiretsu and non-keiretsu firms is smaller for the 1998-2007 period than 1988-1997 period. This phenomenon may be a result of dilution of cross shareholdings among the keiretsu firms. Despite this, the sustained significant level of cross shareholdings among the keiretsu firms still manage to keep a lower earnings management level than the non-keiretsu firms. With this report, we illustrate keiretsu firms’ progress towards an earnings reporting environment with greater manipulation over time. BUSINESS 2009-04-01T01:05:39Z 2009-04-01T01:05:39Z 2009 2009 Final Year Project (FYP) http://hdl.handle.net/10356/15133 en Nanyang Technological University 46 p. application/pdf
institution Nanyang Technological University
building NTU Library
continent Asia
country Singapore
Singapore
content_provider NTU Library
collection DR-NTU
language English
topic DRNTU::Business::Accounting::Reporting
spellingShingle DRNTU::Business::Accounting::Reporting
Seah, Wan Lin.
Yap, Jasmine Aik Ha.
Sim, Shi Lin.
Earnings management in Japan.
description We investigate how the companies under keiretsu manage their earnings compared to the non-keiretsu in the Japanese market during two periods, namely 1988-1997 and 1998-2007. Using the modified Jones model, which measures the management of reported earnings through discretionary accruals, this paper finds that the progression in time has continued to reveal significantly greater earnings management among non-keiretsu than keiretsu firms. This can be attributed to greater monitoring ability among the keiretsu firms. Interestingly, we find that the magnitude of difference in discretionary accruals between keiretsu and non-keiretsu firms is smaller for the 1998-2007 period than 1988-1997 period. This phenomenon may be a result of dilution of cross shareholdings among the keiretsu firms. Despite this, the sustained significant level of cross shareholdings among the keiretsu firms still manage to keep a lower earnings management level than the non-keiretsu firms. With this report, we illustrate keiretsu firms’ progress towards an earnings reporting environment with greater manipulation over time.
author2 Low Buen Sin
author_facet Low Buen Sin
Seah, Wan Lin.
Yap, Jasmine Aik Ha.
Sim, Shi Lin.
format Final Year Project
author Seah, Wan Lin.
Yap, Jasmine Aik Ha.
Sim, Shi Lin.
author_sort Seah, Wan Lin.
title Earnings management in Japan.
title_short Earnings management in Japan.
title_full Earnings management in Japan.
title_fullStr Earnings management in Japan.
title_full_unstemmed Earnings management in Japan.
title_sort earnings management in japan.
publishDate 2009
url http://hdl.handle.net/10356/15133
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