| Summary: | 碩士 === 輔仁大學 === 會計學系碩士班 === 95 === This study examines the incremental information content of the disclosure of U.S. vs R.O.C GAAP reconciliation in Form 20-F for seven Taiwan companies that issued ADR in the U.S stock exchanges from 2002 to 2006. Besides, study analyzes and compares the differences of GAAPS between Taiwan’s and U.S.’s and examines the impacts on the reported earnings and book values resulted from the GAAP divergence.
The main findings are as follows:
1、The reconciliation information contained in the Form 20-F of the 7 companies issuing ADR had incremental information content in Taiwan stock market .Specifically , there are significantly negative abnormal stock returns during the event period （from day -1 to day +1） for the seven cross-listed firms. Moreover, the abnormal returns were more negative if the earnings based on R.O.C. GAAP are greater relative to those based on U.S. GAAP. It also finds that there were abnormal trade volume during the same event period for the seven Taiwan companies issuing ADR.
2、Based on the case study for UMC and TSMC, it showed that the impacts on earnings resulting from the GAAP divergence mainly comes from the following accounting issue, in the order of the magnitude: goodwill, compensation, derivatives, depreciation, long-term investment, bond, optional and tax.
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