| Summary: | 碩士 === 中原大學 === 會計研究所 === 95 === Abstract
Historical cost-based accounting information is unable to objectively express the operating performance of the business and to exactly reflect the value of the firms. Statements of Financial Accounting Standards (SFAS) No. 35 - Accounting for Asset Impairment, provide a way for firms to adjust the asset book value to approach its real value .
This study focuses on how this new SFAS affects the equity valuation of electronic industry in Taiwan. This study adopts Ohlson’s accounting-based valuation model (1995) to study whether asset impairment affects the equity valuation of electronic industry in Taiwan. The sample firms are constrained to listed electronic companies in Taiwan because electronic firms own lots of equipments, facilities and plants. The influence of SFAS NO.35 on electronic industry in Taiwan is in evidence. The asset impairment affects the equity valuation of electronic industry in the same year and investors view impairment as a good news to reflect real value in the future. Investors also perceive the disclosure of components of impairment and in turn modify their equity valuation. We also find that deferred valuation effects exist in the equity valuation of asset impairments.
In summary, investors do take notice of the issue of Statements of Financial Accounting Standards (SFAS) No. 35 - Accounting for Asset Impairments, which affects the equity valuation of electronic industry in Taiwan .
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