臺大管理論叢 NTU Management Review VOL.30 NO.2

The Effects of Relaxing the Reconciliation Requirement in Foreign Private Issuers’ SEC Filings on Earnings Management Strategies: IFRS Adopters versus U.S. GAAPAdopters 100 Except for variables that are mechanically correlated (e.g., RM_SUM it , RM_PROD it , and RM_DISX it ; SM_SUM it , SM_PROD it , and SM_DISX it ), the results provide evidence of significant correlations, but to a lesser degree, between various pairs of variables. Table 3 Correlation Matrices for the Variables in Each Set of Empirical Tests Panel A. Variables in tests of the association between accrual-based earnings management and real activities manipulation for U.S. GAAP observations (n = 78) Variable a DA it RM_SUM it RM_PROD it RM_DISX it BBATH it SM_SUM it RM_SUM it 0.414*** RM_PROD it 0.206* 0.621*** RM_DISX it 0.397*** 0.887*** 0.189 BBATH it -0.295** -0.420*** -0.190 -0.404*** SM_SUM it -0.284** -0.661*** -0.246* -0.683*** 0.210* SM_PROD it -0.242** -0.573*** -0.238** -0.578*** 0.158 0.888*** SM_DISX it -0.271** -0.608*** -0.144 -0.676*** 0.185 0.893*** DEBT it 0.077 0.044 0.288** 0.226* 0.141 -0.082 ST_DEBT it 0.273** 0.112 0.139 0.221* 0.109 0.284** BIG it -0.073 -0.112 -0.136 -0.060 -0.018 0.088 MV it -0.115 -0.246** -0.229* -0.172 -0.208* 0.130 EARN it 0.381*** 0.539*** 0.149 0.588*** -0.441*** -0.481*** DA it-1 -0.336*** 0.133 0.065 0.127 0.131 0.574*** LTGN it -0.159 0.517*** 0.119 0.577*** -0.061 0.101 Panel B. Variables in tests of the association between accrual-based earnings management and real activities manipulation for IFRS observations (n = 83) Variable a DA it RM_SUM it RM_PROD it RM_DISX it BBATH it SM_SUM it RM_SUM it 0.197* RM_PROD it 0.169 0.819*** RM_DISX it 0.144 0.775*** 0.273** BBATH it -0.170 -0.292** -0.194* -0.277** SM_SUM it -0.541*** -0.649*** -0.582*** -0.615*** 0.119 SM_PROD it -0.571*** -0.499*** -0.595*** -0.177 -0.005 0.759*** SM_DISX it -0.596*** -0.467* -0.191* -0.573*** 0.010 0.779*** DEBT it -0.039 -0.277** -0.194* -0.250** 0.140 0.079 ST_DEBT it -0.045 0.111 0.129 0.034 -0.159 -0.203* BIG it -0.058 -0.068 0.037 -0.151 -0.054 0.147 MV it -0.091 -0.003 -0.085 0.103 -0.024 0.090 EARN it 0.107 0.099 -0.089 0.259** -0.240** -0.048 DA it-1 -0.077 0.182 0.126 0.166 -0.012 0.353*** LTGN it 0.132 0.226** 0.091 0.272** -0.188* -0.187 Note: ***,**,* denote significance at the 0.01, 0.05, and 0.10 level, respectively. Note a : See Table 2 for variable definitions.