A Study on Derivatives Trading and Corporate Characteristics for Taiwanese Listed companies

• Main Authors: Ming-Hung Chen, 陳明宏
• Other Authors: Jiu-Young Jian
• Format: Others
• Language: zh-TW
• Published: 2007
• Online Access: http://ndltd.ncl.edu.tw/handle/02975786933185465356

碩士 === 國立雲林科技大學 === 會計系研究所 === 95 === There is strong demand to implement Accounting Principles No.34 and No.36 due to increasing derivatives trading dramatically in Taiwanese listed companies. After carring out these two principles, derivatives tradings are more transparent for financial reporting. This study examines the association between derivatives trading and corporate characteristics for Taiwanese listed companies during 2002-2006. This study also explains whether different probability of using derivatives among different industries. The empirical results show that it is more likely to deal derivatives when firms with greater size, greater exchange risk,less time interest earned, greater directors’ and supervisors’ shareholding and greater R&D intensity for Taiwanese listed companies. This paper also find that some industries including cement, paper, electronic and electric machinery are more likely to deal derivatives.Whereas construction and glass ceramics industry are less likely to deal derivatives. After Accounting Principles No.34 and No.36 carried out, this paper find that both time interest earned and directors’ and supervisors’ shareholding and R&D became insignificant.