In this paper, we explore the independent director monitoring the suspected observations want to make discretionary expenditures manipulation to increase the current earning in Taiwan from 1997 to 2010. Our empirical results found that appoint independent directors and the higher the ratios of independent directors appears to mitigate the manipulation behavior of reducing discretionary expenditures. Voluntary appoint independent directors can reduce discretionary expenditures manipulation in the company faced zero earnings threshold, ineffective monitoring by the mandatory appointment of independent directors for comply with the regulation requirements. The control benefits of controlling stockholders moderating the effect of the independent directors monitoring the discretionary expenditures manipulation.
