The Effect of Corporate Fraud Behavior on Shareholders’ Wealth - Evidence of Taiwan Listed Companies

• Main Authors: CHIEN, AN-YU, 簡安瑜
• Other Authors: WANG, YI-HSIEN
• Format: Others
• Language: zh-TW
• Published: 2018
• Online Access: http://ndltd.ncl.edu.tw/handle/3nq9mh

碩士 === 中國文化大學 === 財務金融學系 === 106 === Insider trading and share price manipulation sometimes occurred in Taiwan over recent years. Some companies seek unscrupulous profits by engaging in insider trading, whereas window dressing is improper market behaviour. They both impose a fatal blow to a company’s financial conditions and its image. However, some managers use window dressing to achieve personal gains, meet the expectations of investors, and maintain the continuous growth for their company. This paper samples companies listed on the Taiwan Stock Exchange and the Taipei Exchange that have been reported to have obtained illegal profits or have conducted false financial reporting from January 1, 2005 to December 31, 2016. The event study method is used to analyze the impact of illegal actions on shareholder wealth effects. The purpose is to investigate into any abnormal returns resulting from fraud. Moreover, this study analyzes whether there exist significantly abnormal returns and trading volumes, and further examine the explanatory factors which affect cumulative abnormal returns and cumulative abnormal volumes by quantile regression. The results of this study found that negative abnormal returns and positive trading volumes present different signals for investors.