| Summary: | 碩士 === 中原大學 === 會計研究所 === 105 === Abstract
Following the Asian financial crisis in 1997 and the financial scams and scandals of corporate around the globe in the 2000s, corporate governance has become an important topic of concern of the government and among scholars the public. Several laws and research were therefore implemented to prevent major shareholders and managers of a corporate from threatening the rights of minor shareholders through their roles and powers, to prevent another financial crisis, and to improve the transparency of market information, the protection to investors, and the completeness of the capital market. The future earnings response coefficient (FERC) was first proposed by Collins, Kothari, Shanken, and Sloan (1994). The paper proved that future earnings would be demonstrated by the correlation between stock price and earning. It also pointed out that a stock price would have greater impact on future earnings than on the earning of the same period, because the earning of the same period lacks timeliness and noise. Therefore, the present study aims to assess the correlation between corporate governance and FERC, such as that whether corporate governance has an impact on the level of reflection of future earnings on stock return. The study results show that corporates with better governance are associated with higher FERC and those with poorer governance are associated with lower FERC.
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