The Information Content of Implementing Financial Accounting Standards No.10

• Main Authors: Shu-ying Chou, 周淑英
• Other Authors: Weissor Shiue
• Format: Others
• Language: zh-TW
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/12839634736684701286

碩士 === 國立高雄第一科技大學 === 財務管理研究所 === 98 === This study aims to examine the relationship between earnings and stock prices affected by the new SFAS No. 10 at the stock exchange and OTC market in Taiwan. This research adopts the event study approach and the OLS regression model to analyze the accumulated average abnormal returns of stocks in listed companies at the stock exchange and OTC market in Taiwan for the purpose of determining determined whether to have the information content. Empirical results show that earnings have information content. Before accountant earnings are announced, each group of cumulative abnormal returns mostly is 0. When accountant earnings are announced and investors’ expect behaviors are superior to the account earnings, stock price performance mostly is positive. On the contrary, when investors’ expect behaviors are lower than the account earnings, stock price performance are negative, which shows that the relationship between the accountant earnings and stock price are closely related. Using the regression model to compare the earnings before SFAS No. 10 with the ones after SFAS No. 10. Empirical results show the significant relationship between the earnings before adjusting and abnormal returns, 09Q1-08Q4(QoQ) its R2 has information intension of increments, when the accounting earnings that the company announces are higher, the abnormal returns of the company will be relatively high too. When Inventory Falling Price Loss is added, R2 has not increased to the same as Ball (1972). Though the explaining ability of cumulative abnormal returns do not increase, cumulative abnormal returns still have information content.