碩士 / 國立臺北大學 / 會計學系 / 98 / The capital market in Taiwan is comparatively small than abroad and is lack of ways for raising capital. As an export-oriented country, there is a considerable demand of overseas investment for entrepreneur in Taiwan. Thus, for the sake of meeting needs of raising overseas capital, the government in Taiwan revised “Regulations Governing the Offering and Issuance of Overseas Securities by Issuers”. However, as the regulation come into force, companies are exposed to a different legal environment of raising overseas capital, and concerning impacts are speculated to be revealed in the quality of financial statement. Our study is to focus on whether the quality of financial statement perceived by investors will change under such circumstance?
For companies in the year of issuance, the CPA will limit its span of earnings management, and thus the earnings quality is better than ever (Lee et al., 2004). d’Arcy (2000) pointed out that, when choosing accounting principles, Anglo-American countries are stricter than Continental-European countries. Revealed in the earnings, companies in common-law countries are much timely and sensitive to bad news than code-law countries.(Bell etal., 2000). In Leuz et al.(2002) study, it’s concluded that legal environment for common law countries is much more prudent and it’s hard to find behaviors of earnings management, thus provide better earnings equality. Also, according to Teoh et al. (1993) study, there is larger ERC(Earnings Response Coefficient, ERC) with better financial statement equality. Above all, our study expects that companies raising overseas capital from common-law countries will reveal larger ERC than others.
Our samples are selected from companies in Taiwan raised overseas capital by overseas convertible bonds, ADR (American Deposit Receipt, ADR) and GDR (Global Deposit Receipt, GDR) from 1992 to 2009, for the first time. Using its pre- and after- issued year and issued location as measurement of legal liability. In addition, we also take the issues amount into account. We then use market-adjusted model to calculate CAR(Cumulative Abnormal Return, CAR) and analyze it by the multi-regression.
Our study resulted that, after raising capital abroad, investors might change their perception towards companies’ financial statement and perceive that there is increased legal liability. Nevertheless, the same response did not happen as expected for the companies raising capital from common-law countries. However, after considering issued amount, investors also perceived the increased legal liability, which gave us a hint that issued amount might actually be the crucial factors of affecting investors’ perception.
| Identifer | oai:union.ndltd.org:TW/098NTPU0385015 |
| Date | January 2010 |
| Creators | Chuang, Yu-Lum, 莊育倫 |
| Contributors | Jan, Zan-Lee, 李建然 |
| Source Sets | National Digital Library of Theses and Dissertations in Taiwan |
| Language | zh-TW |
| Detected Language | English |
| Type | 學位論文 ; thesis |
| Format | 68 |
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