| Summary: | 碩士 === 國立中興大學 === 會計學系 === 85 === Previous studies suggest that investors did utilize
financial statement information to evaluate corporation
historical performance, to understand current performance, to
estimate future profitability and thus to make justifiable
investment decisions. This paper intends to understand whether
financial ratio information affects investors* behavior in order
to testify whether financial ratio information possesses
usefulness and information content. The
methodology is first based on factor analysis to screen out
financial variables. Furthermore, simple regression, multiple
regression, partial F-test and ranked partial correlation
analyses are utilized to analyze the relationships between
unexpected earnings-based ratios and cumulative abnormal return
in order to testify the information content of financial ratios.
The results suggest:
1.Unexpected earnings-based ratios and cumulative abnormal
returns are significantly related; thus, earnings-based ratios
possesses information content. 2.In addition to earning-based
ratios, nonearnings-based ratios individually are also
significantly related to cumulative abnormal return. In
addition, partial F-test also reflects the fact that overall
nonearnings-based ratios also have information content.
3.Based on all analytical results, financial ratios information
influences investors'' decision to a certain degree.
Consequently, the conclusion is that financial ratio information
possesses information content.
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