A study on the market information transmission effect of the procomp inofrmatics event

• Main Authors: Hsin-Yi Liu, 劉欣宜
• Other Authors: 葉疏
• Format: Others
• Language: zh-TW
• Published: 2005
• Online Access: http://ndltd.ncl.edu.tw/handle/07966701954664738462

碩士 === 國立臺灣大學 === 會計學研究所 === 93 === Procomp Informatics unexpectedly announced corporate reorganization on June 15th, 2004. The incident and related events have not only affected the reputations of two prestigious accounting firms, but also caused tenser pressure for accountants in providing auditing service. Executive Yuan’s Financial Monitoring and Management Committee penalized Procomp Informatics’ CPA by suspending their right to provide auditing services for two years, effective July 15 of 2004. All in all, the Procomp Informatics event has had a profound and comprehensive impact on the capital market in Taiwan. This study investigates the impact of information transmission in capital market post-Procomp Informatics’ affair. The investigation focus on whether market reaction after this event resulted from investors’ fear and distrust regarding financial statements similar to Procomp Informatics. Due to Procomp Informatics event immediate influence the semi-annual report of the year 2004, this study collects financial statements of public (offering) companies prior to the event and attempts to examine the relation of stock price basing on the characteristics of Procomp Informatics. The analysis reveals that ever since the Procomp Informatics event, investors become more concerned the worse a company’s operational and financial performances are. Even though earnings quality and change of auditor are two warning indices the media specifies following the event, this study concludes that investors don’t seem to worry about them too much.