| Summary: | 碩士 === 國立臺北大學 === 會計學系 === 95 === This study adopts empirical research and association analysis methodologies to investigate Taiwan’s capital market, exploring the value relevance of financial instruments in the financial reportings after the Statements of Financial Account Standard (SFAS) No. 34 has taken effect. To perform a regression analysis, this study adopts altogether the Ohlson Model (1995), its derived model and the earnings-returns model. The scope of this study covers (1) the value relevance of both financial assets and financial liabilities, (2) the value relevance of comprehensive income’s related accounts and (3) the overall influence of SFAS No. 34 on the value relevance of financial reporting. In an attempt to analyze the first two subjects of interest, the 1st to 3rd seasonal data of the listed non-financial companies in 2006 is covered. As for the last subject of interest, the 1st to 3rd seasonal data in 2005 are also included as a comparison. The empirical findings include:
1. In terms of the whole sample, the stock capital market can respond effectively to two financial assets, namely available-for-sale financial assets and financial assets measured at cost. In other words, these financial assets are recognized by investors as part of the company value evaluation criteria, and derive their value relevance hence. However, the following four financial assets and three financial liabilities are not significant factors to explain the stock price: (1) financial assets measured at fair value through profit and loss, (2) held-to-maturity financial assets, (3) hedging derivative financial assets, (4) unmarketable bond investments, (5) financial liabilities measured at fair value through profit and loss, (6) hedging derivative financial liabilities and (7) financial liabilities measured at cost. As far as the income statement is concerned, the income valuation of financial instruments is not a significant factor to explain the stock price either.
2.Within the four comprehensive income accounts related to the SFAS No. 34, change of unrealized gain or loss (under the shareholders' equity category) is the only significant factor available to explain the stock return, and derives its value relevance hence. The other three variables are not significant factors and, as such, derive no value relevance, namely, (1) the cumulative effects of net income due to first-time application to the SFAS No. 34, (2) the cumulative effects of shareholders' equity due to first-time application to SFAS No. 34 and (3) the income valuation of financial instruments in the income statement.
3. After the SFAS No. 34 has taken effect, overall accounting information such as companies’ book value and net income is a better factor to jointly explain the stock price.
4. The model adaptability of the electronic industry is superior to that of the traditional industry, while the model adaptability of the big enterprise group is superior to that of the small sized company group. The possible reason may be that investors have a higher confidence in the accounting information of both the electronic industry and big enterprises, as compared to that of both the traditional industry and the small sized companies. When evaluating the company value, investors will take the accounting information as an important source of reference.
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