An investigation of conservatism accounting in finance industry in Taiwan

• Main Authors: Jen-Chien Wen, 溫仁傑
• Other Authors: Yu-Hui Su
• Format: Others
• Language: zh-TW
• Published: 2009
• Online Access: http://ndltd.ncl.edu.tw/handle/70708228586467189193

碩士 === 東吳大學 === 會計學系 === 97 === The primary objective of this study is to investigate the association between the ownership structure of Taiwanese firms of finance industry, measured by the divergence between the ultimate owner control and equity ownership level, and conservatism accounting adapting to Basu’s (1997) model. In addition, this study also examines the changes of conservatism accounting after the second revision of Generally Accepted Accounting Principle No. 34 in Taiwan. The studied samples in this research are the listed companies whose financial and stock price information was taken in Taiwan in the first season from 2003 to 2009. The empirical results indicate that firms tend to adopt less conservative accounting in the presence of the greater divergence between the ultimate owner control and the equity ownership level, as predicted. Furthermore, this study inferences that there is a big bath effect, so I can also find the effect of conservatism accounting did not decline after the second revision of Generally Accepted Accounting Principle No. 34 in Taiwan. My findings support to the notion that ultimate corporate ownership structure is a key factor in determining the quality of earnings, such as financing industry Taiwanese, and the second revision of Generally Accepted Accounting Principle No. 34 maybe become an instrument of earnings management.