| Summary: | 碩士 === 南華大學 === 管理科學研究所 === 94 === In stock market, technology industry’s trading amount per day and total stock values usually occupy more than half of market trading amount and total market values, which shows its highly influential quality and worth of research. Therefore, this research, based on the income timeliness model of Basu (1997), analyze if the conservatism in financial statements of technology firms listed in US NASDAQ and electronics firms listed in Taiwan are to fit accounting news conservatism principles. Besides, the research investigates whether technology industries in the two countries have conservatism in their financial statements under the influence of company specifics, such as assets, return on assets, and liability ratio. Then, it investigates conservatism in those companies'' financial statements during bull/bear market and high/low litigation risks. Finally, it applies the cash flow per share to verify the investigation results of earnings per share, comparing earnings and cash flow
per share to show which is more dominant upon return.
The conclusion of the research suggests:
1.Generally speaking, electronics sectors listed in Taiwan and technology sectors listed in US NASDAQ don’t have conservatism in their financial statements.
2.Dividing technology industry in Taiwan and the US into six groups, high/low assets, high/low return on assets, and high/low liability ratio, results in that, in Taiwan, groups with low assets, low return on assets, and high liability ratio have conservatism in their financial statements, and that, in the US, groups with low assets, low return on assets, and low liability ratio have conservatism in their financial statements.
3.According to the investigation on company specifics and the income timeliness model, among electronics sectors in Taiwan, companies with high liability ratio have conservatism in their financial
statements rather than that with low liability ratio.
4.During bull market, technology companies in Taiwan and the US both have conservatism in their financial Statements; however, they don’t have the quality during bear market.
5.Under low, companies of electronics sectors in Taiwan have conservatism in their financial statements.
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