The Impact of InformationTransparency on the Relationshipbetween Economic Vaule Added(EVA), Earning and Firm Value

• Main Authors: liang chih, 郭志良
• Other Authors: none
• Format: Others
• Language: zh-TW
• Online Access: http://ndltd.ncl.edu.tw/handle/54134277807183014995

碩士 === 國立中正大學 === 會計所 === 95 === Abstract The finding related to economic value added and earning reflecting on firm value is not consistent. As enterprise''s fraud case in recent years grows thickly, how to judge the firm value is a great challenge for investors to reduce the investment risk. The issue whether information transparency impact on the relation between economic value added & earning and firm value is seldom studied. Through surveys we obtained data from the first and second years of the Securities & Futures Institute (SFI) of “Information disclosure and evaluation system” for all publicly traded and OTC companies listed in the Taiwan Stock Exchange Corporation (TSEC). I test the impact of information transparency on the relation between economic value added, earning and firm value for all samples, traditional industries and Hi-Tech industry. The emperical result shows that: 1. Economic value added is positive and correlated with firm value. Information transparency does not influence the relation between economic value added and firm value. 2. For traditional industry, information transparency is higher, the earning (ROA , EPS ) is more related with firm value. This phenomenon does not exsit in the Hi-Tech industry However, the earning (ROA , EPS ) is positively correlated to firm value in the Hi-Tech industry. The result indicates that general investors can use the information of economic value added to be the basis of investment. Market Observation Post System etc. contributes to the traditional industry''s accounting earning (ROA, EPS) and the improvement with related firm value. The manager can improve the reflection of earning on firm value via disclosing to increase investor''s confidence, market mobility and reduce capital cost. Key words: Information Transparency, Economic Value Added, Earning, Firm Value