Earnings Quality Test of IFRS Adoption in Taiwan

• Main Authors: Jing-Jie Huang, 黃靖傑
• Other Authors: Yu-Cheng Chen
• Format: Others
• Language: zh-TW
• Published: 2016
• Online Access: http://ndltd.ncl.edu.tw/handle/02068029061016270970

碩士 === 國立中興大學 === 財務金融學系所 === 104 === This paper uses all firms listed on the Taiwan Stock Exchange from 2010 to 2015 as the research sample. We compared the earnings quality before and after the adoption of IFRS in Taiwan to examine whether earnings quality has improved among Taiwanese publicly traded companies or not. The empirical results showed that earnings quality has significantly improvements after adoption of IFRS in Taiwan. We also use the model with performance adjustment to do robust check. The result of robust check reaches a consistent conclusion. After adoption of IFRS in Taiwan, publicly traded companies have significantly improved their earnings quality. In addition, this paper further examined the relevance of earnings information including confirmatory and predictive values. The results indicated significant improvements in both the confirmatory and predictive values of earnings information after adopted the IFRS. Finally, we try to test the relationship between analysts forecast errors and adoption of IFRS in Taiwan. The results showed that analysts can more correctly predict the company’s future profit after adopted the IFRS.