Previous studies have focused on researching earnings management behavior\nin nonprofit hospitals in the United Kingdom and the United States. However,\nthe operational system and environment of hospitals in Taiwan are substantially\ndifferent from the cases studied, and therefore cannot be considered\nequivalent. The objective of this study was to determine whether earnings\nmanagement is practiced in NFP hospitals in Taiwan and to analyze their\nearnings management behavior. The ordinary least square method was used\nto examine the relationships in Taiwanâ??s nonprofit hospitals. Alternative\nprocedures, such as the abnormal bad debt, abnormal non-operating or\nnon-revenue generating activity expenditure, and abnormal net gain on the\nsale of property models were also developed and tested to measure abnormal\nreal items. Research has indicated that auditor specialization and auditor tenure\nhave a negative relationship with earnings management. The empirical\nresults also showed that the abnormal net gain on the sale of property is ideal\nfor evaluating earnings management in Taiwanâ??s nonprofit hospitals.
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