Evaluating Earnings Management in Taiwan’s Nonprofit Hospitals Using Cross-Sectional Abnormal Items Models
Abstract
The purpose of this paper is to examine whether earnings management in the non profit hospitals of Taiwan and analyze the earnings management behavior. We developed and tested the standard-Jones, modified-Jones, BD (abnormal bad debt), WCA (abnormal working capital), NORR (abnormal non-operating or non-revenue generating activity expenditure), and NGSP-models (abnormal net gain on the sale of property) to estimate the amount of abnormal accrual items or abnormal real items. Empirical evidence suggested that the BD, NORR and NGSP models may be used to determine levels of earnings management. Thus, these models are ideal for determining how Taiwan’s nonprofit hospitals manage their earnings.
Submission of an article implies that the work described has not been published previously (except in the form of an abstract or as part of a published lecture or academic thesis), that it is not under consideration for publication elsewhere, that its publication is approved by all authors and tacitly or explicitly by the responsible authorities where the work was carried out, and that, if accepted, will not be published elsewhere in the same form, in English or in any other language, without the written consent of the Publisher. The Editors reserve the right to edit or otherwise alter all contributions, but authors will receive proofs for approval before publication.
Copyrights for articles published in MTI journals are retained by the authors, with first publication rights granted to the journal. The journal/publisher is not responsible for subsequent uses of the work. It is the author's responsibility to bring an infringement action if so desired by the author.
