An Empirical Investigation of the Market Reactions of Taiwan Listed Companies to the Procomp Scandal

• Main Authors: Heng- Shang Wu, 巫恆翔
• Other Authors: Jia-Xun Jiang
• Format: Others
• Language: zh-TW
• Published: 2007
• Online Access: http://ndltd.ncl.edu.tw/handle/32107589170935963968

碩士 === 輔仁大學 === 會計學系碩士班 === 96 === Based on the event date on June 15th 2004, the research is built on the agency hypothesis, insurance hypothesis, and information hypothesis. It assumes that companies audited by Procomp‘s CPA, the stock price will be influenced by the financial crisis of Procomp. This study explored: 1. The companies, audited by Procomp’s CPA, tend to have higher negative return than those attested by other CPAs. Companies have bigger negative return if they have higher possibility of financial distress. But if the companies have lower percentage of insider holding, the negative return of the stock price will occur in the later stage. 2. Compared with the companies attested by other CPA, the clients of procomp’s CPA tend to have higher negative return in the later stage. But if the companies have lower percentage of insider holding, their negative reward of stock price will become bigger in the earlier stage. This result fits in with agency hypothesis, insurance hypothesis, and information hypothesis