Foreign investment and the value-relevance of earnings

• Main Authors: Yaw-Ru Chang, 張耀儒
• Other Authors: Yu-Ju Chen
• Format: Others
• Language: zh-TW
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/77114698739275312656

碩士 === 靜宜大學 === 會計學系研究所 === 98 === The purpose of this paper is to investigate the relationships among corporate foreign direct investment, earnings value relevance, local choice and corporate governance. The findings suggest that cross-border investment will complex financial reports and worsen information asymmetry between managers and outside investors In addition, in the condition that higher ration of investing in OECD blacklist countries, it will be more pronounced that higher degree of foreign direct investment decrease earnings value relevance, indicating investing location will influence earnings value relevance. We also find that companies can reduce the negative effects of foreign direct investment on earnings value relevance through enhancing their corporate governance.