| Summary: | 碩士 === 東吳大學 === 會計學系 === 96 === The purpose of this study is to examine the association between accounting conservatism and earnings response coefficients. The conservatism is the different confirmation degree of the revenue and expense. If we distinguish unexpected earnings into positive and negative parts, the market response to companies with high(low) conservatism differently. If the unexpected earning is positive, earnings response coefficients of companies with high conservatism will enhance; If the unexpected earning is negative, earnings response coefficients of companies with low conservatism will enhance.
The studied samples in this research are the public companies in Taiwan during 2005 and 2006. Besides, financial information of public companies in Taiwan taken from 1986 to 2005(2006) was collected in order to calculate the conservatism coefficient. The result of this research shows that if the unexpected earning is positive, earnings response coefficients of companies with high conservatism will significantly enhance, and if the unexpected earning is negative, earnings response coefficients of companies with low conservatism will enhance.
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