Impairment of Assets and Taiwan Stock Market Reactions: SFAS No. 35 for Empirical Analysis

• Main Authors: Miao-Chuan Chien, 簡妙娟
• Other Authors: Dar-Hsin Chen
• Format: Others
• Language: zh-TW
• Published: 2004
• Online Access: http://ndltd.ncl.edu.tw/handle/61989221984700278886

碩士 === 淡江大學 === 財務金融學系碩士在職專班 === 94 === On July 1, 2004, R.O.C FASB issued the Impairment of Assets Accounting Statement -- Statement No.35. Basically, Statement No.35 is considerably equivalent to IAS 36. The purpose of Statement No.35 issuance is to reflect the true value of enterprise assets, improving the transparency of the financial report, and bring Taiwan more closely in line with international trends. Market model of Event Studies has been applied to analyze the stock price variations before and after the issuance of the SFAS No.35. The purpose of the thesis is to examine whether if the abnormal returns are significantly higher than zero. Using the issuance date July 1, 2004 as the event date and the event period being the 30-days before and after the issuance date. Major findings can be summarized as follows: 1.The effect of Statement No.35 issuance shows significant abnormal returns for whole sample. During the event period, there are significant negative abnormal returns before and after the event date. Comparing the effect of cumulative abnormal returns in different event periods, we found different event periods do not influence the results. 2.There exist significant and negative abnormal returns for the electronic, finance and insurance industries around the issuance of Statement No.35 event.