A Study on Value Relevance of SFAS NO.34-instantiating for financial industry in Taiwan

• Main Authors: Ya-Shu Yang, 楊雅姝
• Other Authors: 丁碧慧
• Format: Others
• Language: zh-TW
• Published: 2008
• Online Access: http://ndltd.ncl.edu.tw/handle/c7dc9x

碩士 === 長榮大學 === 經營管理研究所 === 96 === Using quarterly financial statements on 30 banks of Taiwan over 2004-2007, this paper examines whether after and before the SFAS No.34 recognized fair value or history cost of financial instruments is value relevant. Besides, this paper examines whether after and before the SFAS No.34 recognized fair value or history cost of financial instruments and corporate governance is value relevant. After the SFAS No.34 was published, the empirical results revealed that the financial asset of fair value, the fair value of available for sale financial asset, the history cost of held to maturity investment, the history cost of non-active market investment and the financial liability of fair value indeed provide incremental information content, but financial asset of history cost is not value-related. Before the SFAS No.34 was published, the empirical results revealed that the short investment, long investment, current liability and long liability indeed provide incremental information content；after the SFAS No.34 was published, the history cost and fair value information of financial asset and liability is more value-related than before the information of the SFAS No.34 was published. Moreover, after the SFAS No.34 was published, this paper finds that the unrealized valuation gain or loss of financial asset and liability on balance sheet and income statement are both value relevant. Before the SFAS No.34 was published, this paper finds that the unrealized valuation gain or loss of financial asset and liability on balance sheet is more value relevant than on income statement. Finally, this paper finds whether after and before the SFAS No.34 publishing, corporate governance indeed have great influence on the information content of recognized fair value or history cost of financial instruments. When board’s size is big and after the SFAS No.34 was published, this paper finds that financial asset and liability are less value relevant；before the SFAS No.34 was published, this paper finds that financial asset and liability are more value relevant. Besides, when artificial person’s stock is high and after or before the SFAS No.34 was published, this paper finds that financial asset and liability are more value relevant. Moreover, When excess control right is big and after or before the SFAS No.34 was published, this paper finds that financial asset and liability are less value relevant. Finally, when the transparency of information is high and after or before the SFAS No.34 was published, this paper finds that financial asset and liability are less value relevant.