The Determinants of the Accuracy of Earnings Information－Empirical Evidence from Listed Companies in Taiwan and China

• Main Authors: Hsuan-Ling Feng, 馮軒綾
• Other Authors: Jeng-Ren Chiou
• Format: Others
• Language: zh-TW
• Published: 2005
• Online Access: http://ndltd.ncl.edu.tw/handle/46890286182851965683

碩士 === 國立成功大學 === 會計學系碩博士班 === 93 === The main purpose of this study is to investigate the determinants of the accuracy of earnings forecast in Taiwan and China. Before 2005, the disclosure of earnings forecast is mandatory under some specific situations in Taiwan, and that is voluntary in China after 2000 or 2001. This study sample contains the companies of Taiwan and China required to disclosure the earnings forecast from 1994 to 2003. Otherwise, companies which issued earnings forecast are required to announce preliminary（un-audited）earnings in Taiwan since 2002, so our research sample also contains these companies from 2001 to 2003 in order to examine the relationship between accuracy of preliminary earnings and its determinants. Our empirical results show that earnings forecast of China is more accurate than that of Taiwan. In Taiwan, the preliminary earnings is more accurate than earnings forecast. Besides, we find in terms of the accuracy of earnings forecast in Taiwan, the significant discriminative factors are interval of forecast, firm size, leverage, purpose of announcement, and earning ratio（pretax）.In the case of the accuracy of earnings forecast in China, the significant discriminative factors are interval of forecast, change of economic condition, firm size, leverage, purpose of announcement (IPO), change of law. Finally, the factors that affect the accuracy of preliminary earnings significantly in Taiwan are interval of forecast, variation of past earnings, firm size, leverage, insider shareholdings, account receivables to total assets ratio, inventories to total assets ratio.