The Incremental Information Content of Semiannual Consolidated Financial Reports

• Main Authors: Ya-Hsiu Chang, 張雅綉
• Other Authors: Ging Geng
• Format: Others
• Language: zh-TW
• Published: 2006
• Online Access: http://ndltd.ncl.edu.tw/handle/66975005634473327687

碩士 === 東海大學 === 會計學系 === 94 === Abstract Under new regulations in Taiwan, listed companies are required to prepare the semiannual consolidated financial reports from 2005 and a 15-day delay is allowed to preparers of consolidated financial reports in the first year of applying. Accordingly, Companies are categorized by whether financial reports are announced in the same days to investigate the incremental information content of semiannual consolidated financial reports. Annual financial reports are used to compare the incremental information content between parent financial reports and consolidated financial reports in researches. However, the incremental information content of consolidated financial reports is difficult to separate from parent financial reports due to the same announcement days. The portfolio method is used to prevent possible cross-section dependent problem caused by clustered announcement days. In addition, the abnormal returns (AR) and cumulative abnormal returns (CAR) during the event period are analyzed to investigate how the market reacts to parent and consolidated financial reports and factors affect the strength of reactions. Regarding the stock market reaction, the empirical results indicate that the stock prices of companies that announced their parent financial reports showed significant abnormal returns during the event period. In contrast, stock price of the companies that announced their consolidated financial reports showed no significant reaction over parent financial reports. In addition, the importance of investment and income from continuing operations, operating income, gross profit and operating expenses are positively related to the CAR.