The Intra-Industry Effect of the Second Amendment to Taiwan''s SFAS No.34

• Main Authors: Chen-Yu Chen, 陳禎宇
• Other Authors: Han-Min Wang
• Format: Others
• Language: zh-TW
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/72340659876543105891

碩士 === 逢甲大學 === 會計所 === 98 === The 2008 global financial crisis had a significant impact on the world financial markets. Under the European Union enormous political pressure, the International Accounting Standards Board issued amendments to IAS 39 and IFRS 7 on October 13, 2008. The Accounting Research and Development Foundation in Taiwan, referring to the IASB amendments, published the second amendment to Taiwan''s SFAS 34 on October 17, 2008. The second amendment relaxes the rules regarding the reclassification of financial assets. It also allows retrospective application of the amendment starting from 1 July 2008. The purpose of this study is to examine the intra-industry effects of the reclassification announced by Taiwan listed companies. The empirical results show that companies reclassifying financial assets produce negative announcement effects but their rival firms didn’t experience negative share price responses. And, we also find negative earnings announcement effects for the subsamples of electronics and non-electronics companies, but none for their rival firms.