An Empirical Study in the Impacts of Income after Tax and Cash Flows from Operating on Stock Prices

• Main Authors: Shu-Chin Sung, 宋書勤
• Other Authors: Chih-Wen Mao
• Format: Others
• Language: zh-TW
• Published: 2009
• Online Access: http://ndltd.ncl.edu.tw/handle/64115045358310816910

碩士 === 南台科技大學 === 會計資訊系 === 97 === The purpose of this study is to investigate the impact of Income after Tax and Cash Flows from Operating on stock price. This study includes normal corporations and financial crisis corporations based on a sample of 1216 companies in Taiwan. The corporations with equity per share less than 10 dollar, debt ratio being greater than 2/3, or minus earnings per share for current year will be seen as financial crisis corporations; the others as normal corporations. The Barth & Beaver model (1998) regarding stock price, book value and profit is extended to examine the effects of the book value, income after tax and cash flows from operating on stock price for financial crisis corporations and normal corporations. The OLS and panel data are used to select the best measure method to understand the explanatory power of income after tax and cash flows from operating in relation to stock price and then additional explanatory power from different corporations. The empirical results show that (1) the explanatory power of income after tax in relation to stock price is higher than cash flows from operating for normal corporations; (2) the explanatory power of cash flows from operating in relation to stock price is higher than income after tax for financial crisis corporations;(3) there exists the greater additional explanatory power than income after tax in relation to stock price for normal corporations;(4) there exists the greater additional explanatory power than cash flows from operating in relation to stock price for normal corporations; (5)the explanatory power of income after tax is higher than book value in relation to stock price for normal corporations and the explanatory power of book value is higher than cash flows from operating for financial crisis corporations.