Listing Type and Financial Statements Informativeness

• Main Authors: kuan-Chang Chu, 朱冠璋
• Other Authors: Tsai-Ling, Liao
• Format: Others
• Language: zh-TW
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/76721974782785061955

碩士 === 靜宜大學 === 財務金融研究所 === 98 === The purpose of this study is to investigate whether earnings management impairs the value relevance of accounting information in two kinds of listing firms. By examining initial public offerings (IPOs) and firms changing from the OTC market to the Taiwan Stock Exchange (TSE) during 1995-2005, we find that: (1) the extent of earnings management of switching firms is greater than that of initial public offerings in the pre-listing period. (2) the overall explanatory power of accounting information for market value of switching firms is lower than that of IPOs for which there is reasonable ex post evidence of earnings management. (3)compared with IPOs, net income of switching firms is less value relevant while book value of switching firms is more value relevant in determining market value in exchange firms when earnings management is present.