Accounting conservatism and value-relevance of financial statement

• Main Authors: Pei-Jie Chen, 陳姵潔
• Other Authors: Hung-Shu Fan
• Format: Others
• Language: zh-TW
• Published: 2009
• Online Access: http://ndltd.ncl.edu.tw/handle/38369731995018819309

碩士 === 輔仁大學 === 會計學系碩士班 === 97 === The purpose of this thesis is to examine how conservatism has genuinely influenced the value relevance of financial statement. Based on 8 consecutive years, this study adopts Basu’s (1997) asymmetric timeliness of earnings model to measure the conservatism. The sample consists of listed firms from 1988 to 2007. This study applies Ohlson (1995) model to conduct empirical test. The empirical results are summarized as follows: 1. The more conservatism, the more value relevance increases of earnings, while the more value relevance decreases of book value. 2. In various sensitivity tests, such as adding control variables test, different stock return computation period test, the previous empirical results remain unchanged. 3. Using three-year average market-to-book ratio to proxy the conservatism and rerunning the empirical model, the previous empirical results still holds.