Purpose -The purpose of this paper is to examine whether companies engage in earnings management during the specific years when convertible bonds are issued and redeemed; also to determine if any differences exist in earnings management when convertible bonds are issued domestically or abroad. Design/methodology/approach -Discretionary current accruals are adopted as proxies for earnings management and the regression models are used to control the related variables. Findings -The empirical results indicate that companies conduct earnings management in the years when convertible bonds are issued, and that there is no significant difference between earnings management when convertible bonds are issued in Taiwan or abroad. However, data after 2001 indicate that companies issuing convertible bonds abroad perform less earnings management compared to those issuing convertible bonds domestically. The results show no significant difference in earnings management in the years when convertible bonds are redeemed; the reasons may be due to the relatively small sample size and that the majority of convertible bonds are still outstanding. Originality/value -This paper advances findings from previous studies, that firms conducting seasoned equity offerings manage earnings upward to increase the offering proceeds. This paper highlights the linkage between convertible bonds and earnings management. Conducting an integrated analysis of the relationship between convertible bonds and earnings management, it aims to provide a better understanding of the process.

As the high turnover rate has long plagued the accounting firms, the study investigated the relationships between career orientation, achievement motivation, job satisfaction, and intention to stay for auditors in Taiwan accounting firms.  Variables were chosen due to their potential concerns to auditors’ intention to stay in the accounting firms.  A carefully validated instrument was used to obtain the data. The responses of 122 auditors, with at least one year of audit experience, were drawn from the five biggest accounting firms in Taiwan. LISREL was used to evaluate the empirical data with the hypothesized model and test the results. The results of the empirical test led us to two results: (1) auditors with higher degrees of achievement motivation have higher degrees of job satisfaction, and (2) auditors with higher degrees of job satisfaction have higher degrees of intention to stay.

<p class="MsoBodyTextIndent" style="text-justify: inter-ideograph; text-align: justify; line-height: 11.3pt; margin: 0in 37.2pt 0pt 0.5in; mso-line-height-rule: exactly;"><span style="font-size: 10pt; font-weight: normal; mso-bidi-font-weight: bold; mso-font-kerning: 0pt;"><span style="font-family: Times New Roman;">The Statement on Auditing Standards (SAS) No.82, <span style="mso-bidi-font-style: italic;">Consideration of Fraud in a Financial Statement Audit</span>, requires the auditor to assess the risk of material misstatement due to a fraud and to consider the assessment in designing appropriate audit procedures to be performed. The SAS No. 82 has thus explicitly made the detection of material fraud the auditor&rsquo;s responsibility. The purpose of the study is to use the risk factors identified in SAS No. 82 as the foundation to develop a decision aid to help auditors assess the likelihood of fraudulent financial reporting and to empirically test the effects of the decision aid on assessing the likelihood of fraudulent financial reporting. Using a sample of 45 fraud engagements and 206 nonfraud engagements, we developed and tested a logistic regression model that estimates the likelihood of fraudulent financial reporting. We found that the logistic model (proxied as a decision aid in the study) outperforms the practicing auditors in assessing risk for fraud and nonfraud cases.</span></span></p>

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This study collects data from Taiwan publicly traded corporations that have banker directors between 2003 and 2007, together with a matching sample consisting of firms without banker directors. Variables used to construct empirical analyses are from the Taiwan Economic Journal (TEJ) database. The results indicate that there is a negative relationship between the presence of banker directors and the likelihood of dividend payment. This study contributes to lacuna in the existing banking literature by providing evidence on how banks influence listed corporate dividend policy in emerging markets