An analysis of restatement effect in UMC

• Main Authors: Yung-Ming Peng, 彭詠銘
• Other Authors: Yang-Pin Shen
• Format: Others
• Language: en_US
• Published: 2007
• Online Access: http://ndltd.ncl.edu.tw/handle/88330571980583660666

碩士 === 元智大學 === 財務金融學系 === 95 === The study explores the information efficiency of UMC relative to UMC-ADR. We find that the market responses to financial restatement events were generally negative for UMC and UMC-ADR. UMC’s cumulated abnormal return, from September 26, 2005 to the year ended December 30, 2005, is approximately -22.2%. However, UMC-ADR did not drop as much as UMC in Taiwan. This thesis also examines the within-day pattern of UMC returns surrounding announcements of financial restatement. The SEC raised additional comments about financial statements, such information for Taiwan invertors have greater sensitive than U.S. investors owing to this event is never happened in Taiwan, but it is common in U.S. And then we analysis insider trading event, verify it is only a rumor. So interval return of UMC has not shown the response. On the contrary, UMC-ADR has significant response. There is probability the information asymmetry between the investor in U.S. and in Taiwan.