| Summary: | 碩士 === 東吳大學 === 會計學系 === 94 === June of the 93rd year of the Republic of China, it may be said entering “ post-Praocomp age ”, aggravates the legal liability to the financial statement of administrative authority of the company and accountant. The lawsuit risk runs high with higher speed, this study infers that accountant and administrator authority of the company are be inclined to taking more conservative attitude to the financial statement in order to ask self-insurance. So the study investigates how accounting conservatism of Taiwanese firms varies in pre-Praocomp and post-Praocomp period. Moreover, because government inflicts different punishments on the accountants who release unreal financial statement, financial statement users may view auditors with relatively high litigation activity as “ lower quality suppliers ”( Palmrose, 1996 ).Therefore, this study also investigates whether the punished accountants make conservatism of financial statement higher or change clients.
This study collects financial information of Taiwanese firms in 2003 among half an annual report from the 76th year of the Republic of China to the 94th year of the Republic of China, adopt model of Basu (1997), in order to calculate the conservatism coefficient in the pre-Praocomp and post-Praocomp period. The result of this research shows that the degree of financial reporting conservatism of the whole firms in Taiwan in post-Praocomp period is significantly higher compared to that of the pre-Praocomp period. And the main motive force improved comes from the firms which are not conservative originally. Moreover, the accountants punished in various degrees ' between each other ' are not significantly different in the accounting conservatism of their customers.
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