earticle

영어

This study investigates the income smoothing of public enterprises. To examines whether public enterprises have earnings management. we employ the research method of cross-sectional histogram, which used by Burgstahler and Dichev(1997) and Song et.al(2004), According to Leuz et al.(2003), we analyze whether privatization (listed or not; closed or privatization) schedule impact earning smoothing of public enterprises. In this study, several features of public enterprises’ income smoothing are documented. First, we find that public enterprises tend to smooth earnings by using method of cross-sectional histogram. Second, the results show that there is significantly positive relationship between listed public enterprises and income smoothing. It means that listed public enterprises have less income smoothing which implies that public enterprises have more institutional monitoring and higher audit quality relative to unlisted counterpart. However, public enterprises and privatization schedule have no significant relationship with income smoothing. Additional analysis shows that for listed pubic enterprises or privatized pubic enterprises the relationship is significantly positive. This is consistent with that listed pubic enterprises or privatized pubic enterprises have less income smoothing. This study contributes that the study is the first empirical study on the public enterprises’ income smoothing behaviors.