A Study of Operating Losses in Taiwan's Firms

• Main Authors: Wen-Hsiou Chen, 陳玟秀
• Other Authors: Jin-Fa Hwang
• Format: Others
• Language: zh-TW
• Published: 2007
• Online Access: http://ndltd.ncl.edu.tw/handle/96399608523826693699

碩士 === 中國文化大學 === 會計研究所 === 95 === The purpose of this study is to examine the association between a firm's operating performance, accounting conservatism, macroeconomic, and the operating losses. It is used by managers, creditors, and investors in their decision making. We follow the model as developed by Klein and Marquardt (2006) and use Logistic Regression Model to predict the probability and correct of the operating losses. The results of the study show: A firm has operating losses when operating performance (cash flows from operations, and return on assets) is bad; A firm has operating losses when accounting conservatism is high; A firm has operating losses when macroeconomic is recession. Besides, we find the percentages of correct that these factors predict the operating losses exceed 80%. This finding promotes the explanation in our model.